Popular investment firm Grayscale Investments has started to liquidate all of its XRP holdings, according to a press release shared by the company yesterday.
According to it, Grayscale Investments has decided to dissolve its XRP Trust as a result of the SEC's recent lawsuit against Ripple in which the regulator claims XRP is a security under US law.
The news comes just a few days after the company announced the liquidation of its XRP's positions in its Digital Large Cap Fund.
In particular, Grayscale said:
"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."
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All XRP held by the trust has already been liquidated, and Grayscale plans to distribute net cash proceeds to XRP Trust shareholders after deducting expenses.