Grayscale Investments has announced removal of all XRP positions in the Grayscale Digital Large Cap Fund. The firm used cash proceeds to purchase bitcoin (EXANTE: Bitcoin), ether (ETH), litecoin (LTC), and bitcoin cash (BCH).
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It remains officially unknown why Grayscale Investments decided to delist XRP or whether it has to do with the SEC's lawsuit against Ripple. According to a statement, prior to the sale of XRP on January 4, 2021, XRP was approximately 1.46% of the fund. As of press time, XRP is trading at $0.230 (-1.37%).
Meanwhile, Uphold, a crypto wallet and trading platform, announced it will continue support for XRP unless the SEC's complaint is adjudicated in the SEC's favor and XRP is judged to be a security. The company said in an announcement that the SEC's complaint is currently just "an allegation."
In December 2020, the US Securities and Exchange Commission (SEC) submitted a lawsuit against Ripple Inc., in which it accused the company of unregistered offering of securities. The SEC says Ripple undertook distribution of the XRP tokens without registering offers and sales of XRP with the SEC.
Ripple's CEO Brad Garlinghouse said that classifying XRP as a security is like comparing oil to Exxon's stock. He also added the company will stand up for all the crypto market and will not let the SEC bully the entire industry.
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