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.
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.”