World’s largest crypto asset manager, Grayscale Investments has begun the dissolution of its XRP Trust. This is coming after the lawsuit filed by the U.S Security and Exchange Commission claiming the XRP token is a security and not a cryptocurrency.
Grayscale decided to dissolve the trust following the delisting of XRP as a tradeable cryptocurrency from high profiled crypto exchanges which in turn was in response to again…the filed lawsuit.
“It is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP to U.S. dollars, and therefore continue the Trust’s operations.”
Grayscale has liquidated all of its XRP Trust, with the intention of sharing the resulting cash proceeds (after deducting expenses) among its shareholders. After this, the trust will be ended.
In spite of SEC’s unwavering stance on the status of XRP as a security, several regulators in other countries including Japan’s Financial Services Agency and the U.K. Treasury do not believe it to be the case. The former sees XRP as a cryptocurrency, while the U.K Treasury designates it an “unrelated token”, defining it as “neither e-money tokens nor security tokens.”
Early this month, Grayscale removed XRP from its large-cap crypto fund. This and the series of delistings that XRP has experienced across several exchanges as well as the announcement of the lawsuit itself have been majorly responsible or XRP falling by 40% in 30 days. The token currently trades at $0.31.