Grayscale Dissolves Its XRP Trust In Light Of SEC’s Lawsuit

Grayscale dissolves its XRP Trust in light of the US SEC lawsuit against Ripple and the biggest digital currency asset manager said it will distribute the liquidated money to its shareholders so let’s read more in today’s Ripple news.

Grayscale wrote:

 “In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, resulting in the Sponsor’s conclusion that it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations.”

Grayscale dissolves its XRP Trust from the Grayscale Digital Large Cap Fund the previous week because of the US SEC lawsuit against Ripple. The lawsuit accused ripple and its co-founder Chris Larsen and CEO Brad Garlinghouse of raising over $1.3 billion by selling XRP as an unregistered digital securities offering. Right after the lawsuit, about 27 exchanges have dropped support for XRP and some even delisted it.

Ripple’s general counsel Stuart Alderoty said to his Twitter followers that the company will file its initial response to the SEC’s allegations in a few weeks. Garlinghouse explained that the company is looking forward to a day in court and change of leadership at the Securities and Exchange Commission:

 “We’re on the right side of the facts and of history, and look forward to our day in court – as well as engaging with the new SEC leadership once appointed.”

As reported recently, Grayscale finished 2020 with a huge XRP purchase and had its AUM grew by 10x in one year. The crypto fund manager made its biggest XRP purchase of more than 12 million coins. The leading digital asset manager took full advantage of the developments in the crypto space with record-breaking inflows. The company’s asset under management increased by ten times in 2020 to above $20 billion and Grayscale finished 2020 with a large XRP purchase. Founded back in 2013, the fund manager is among the biggest institutional investors to get exposed to BTC and other crypto assets without worrying about storing the assets. The company registered its best year to this date as institutions started entering the field with major purchases.

According to Grayscale’s Q1 2020 report, the asset manager ended 2019 with an AUM of about $2 billion but the rising popularity of crypto assets and the skyrocketing prices resulted in huge growth to over $20 billion in AUM.