Digital asset management company Grayscale Investments has announced the liquidation of its XRP-based investment trust. According to a press release, Grayscale’s decision was influenced by a claim by the US Securities and Exchange Commission (SEC) against XRP issuer Ripple.
“In response to the SEC’s actions, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms, with the result that the sponsor has concluded that it is becoming increasingly difficult for US investors, including the trust, to convert XRP into US dollars. and therefore continue to operate the trust, ”writes Grayscale.
She also states that she has already liquidated the XRP in the trust and intends to distribute the proceeds to investors.
“The trust will cease to exist after the distribution of the net cash inflow,” the firm adds.
Grayscale previously excluded XRP from its fund of large digital assets. According to the company’s latest reports, the XRP trust had about $ 11.3 million.
While litigation between the SEC and Ripple continues in the US, the Japan Financial Services Agency has confirmed that it does not consider XRP to be a security.
“The FSA is considering XRP as a cryptocurrency based on the definition contained in the Payment Services Act,” the regulator said in a conversation with The Block. “The FSA refrains from commenting on the actions of the authorities of other countries.”
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.