Grayscale will Liquidate the XRP Token Trust.
Grayscale will liquidate the XRP token trust.
Investment firm Grayscale announced the liquidation of its XRP token trust. In a January 13 press release, Grayscale cited a Securities and Exchange Commission (SEC) lawsuit against Ripple alleging the XRP digital asset is a security under US law.
Grayscale last week announced the liquidation of the XRP position in its Digital Large Cap fund.
“In response to the SEC’s actions, several important market participants announced the delisting of XRP from digital asset trading platforms. This will make it more difficult for US investors to convert XRP into US dollars, which will negatively impact the trust’s performance, ”the company said. “Grayscale plans to distribute funds among the shareholders of the trust. The trust will be liquidated after the distribution of funds.”
As previously reported, amid legal troubles for Ripple, several crypto exchanges have restricted XRP trading. Bakkt CEO Gavin Michael announced this week that the platform plans to add support for a number of altcoins, but XRP is not among them.
However, not all regulators consider XRP to be a security. The Japan Financial Services Agency (FSA), for example, has designated this asset as a cryptocurrency underpayment service law.
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