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3.96%Grayscale Investments Begins Dissolution of XRP Trust Citing Ripple SEC Suit
Cash proceeds from the Trust’s liquidated XRP will be distributed to Trust shareholders, Grayscale said.
Updated Sep 14, 2021, 10:56 a.m. Published Jan 13, 2021, 9:16 p.m.
Grayscale Investments, the world’s largest digital currency asset manager, announced it has begun dissolution of its Grayscale XRP Trust following the U.S. Securities and Exchange Commission’s lawsuit against Ripple Labs alleging the XRP token is a security under federal securities law.
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- Cash proceeds from the trust’s liquidated XRP will be distributed to shareholders, Grayscale said, without providing estimates on the proceeds.
- Jan. 8. SEC filings indicate the XRP trust raised $19.2 million from 70 investors over its nearly three-year run. It was not clear how much the fund was worth at liquidation.
- Grayscale blamed the move on the SEC's December 2020 suit against XRP's issuer, Ripple Labs, which has banked $1.3 billion in token sales since 2013. That lawsuit has created a hostile market environment for XRP.
- "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 said.
- Earlier January, Grayscale removed XRP from its large-cap crypto fund.
Read more: Grayscale Drops XRP From Large Cap Crypto Fund Following Ripple SEC Suit
Kevin Reynolds
Kevin Reynolds was the editor-in-chief at CoinDesk. Prior to joining the company in mid-2020, Reynolds spent 23 years at Bloomberg, where he won two CEO awards for moving the needle for the entire company and established himself as one of the world's leading experts in real-time financial news. In addition to having done almost every job in the newsroom, Reynolds built, scaled and ran products for every asset class, including First Word, a 250-person global news/analysis service for professional clients, as well as Bloomberg's Speed Desk and the training program that all Bloomberg News hires worldwide are required to take. He also turned around several other operations, including the company's flash headlines desk and was instrumental in the turnaround of Bloomberg's BGOV unit. He shares a patent for a content management system he helped design, is a Certified Scrum Master, and a veteran of the U.S. Marine Corps. He owns bitcoin, ether, polygon and solana.
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