Top digital asset manager Grayscale Investments has announced its decision to sell all XRP in its holdings. In its place, the company plans to purchase more Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
Grayscale Investments, according to the announcement, recently made the decision to toss the digital asset, dropping XRP from its Digital Large Cap Fund (DLC) at its end of year review. Grayscale disclosed that it used the proceeds from the sale of XRP to purchase Bitcoin and other altcoins.
3/ $XRP was removed following DLC Fund's Quarterly Review (12/31/20). No others assets qualified for inclusion. The below table highlights DLC Fund’s weightings as of January 4, 2021: $BTC $ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8
— Grayscale (@Grayscale) January 5, 2021
According to Grayscale, before the sale of XRP, the crypto amounted for 1.46% of the fund. However, currently, the fund components include Bitcoin (81.63%), Ethereum (15.86%), Bitcoin Cash (1.08%), and Litecoin (1.43%).
“Each Share represented 0.00047489 Bitcoin (BTC), 0.00287011 Ethereum (ETH), 0.00047537 Bitcoin Cash (BCH), and 0.00167314 Litecoin (LTC),” the statement disclosed.
The world’s largest digital currency asset manager also noted that its decision to delist XRP comes after Genesis Global Trading, the fund’s authorized participant, suspended trading of the crypto on its platform. This action was undertaken mainly due to the current United States SEC lawsuit against Ripple Labs Inc. and some of its executives for issuing an unregistered security.
Notably, Genesis Global Trading has announced that trading of XRP ended on its platform on January 15.
Grayscale Surpasses $20 billion in AUM
The world’s largest crypto asset manager disclosed this via its official Twitter account, noting its total assets under management exceeded $20 billion on December 31, 2020.
12/31/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) December 31, 2020
Expressing his excitement with the accomplishment, Barry Silbert, Grayscale CEO, acknowledged the growth via his Twitter account. He tweeted, “We did it! $20 billion in AUM to end 2020, up from $2 billion a year ago. Here’s to another 10x in 2021! Happy new year everybody,” he tweeted.
Major Crypto Exchanges Continue Delisting XRP
However, while the crypto space is witnessing remarkable growth. Ripple’s XRP is facing tough times as more and more cryptocurrency platforms continue dumping the digital asset.
Most recently, Binance U.S., the U.S. arm of the world’s most popular cryptocurrency exchange, disclosed its plans to suspend trading of the digital asset. Also, crypto exchange Bittrex has halt trading of the crypto on its platform.
Additionally, other cryptocurrency platforms like Crypto.com, OKCoin, Coinbase, Bitstamp, Bitwise, among several others, have also announced their decision to suspend trading of the digital asset.
At the time of publication, Bitcoin was trading at $35,972.63, with a market cap of $669,213,010,340 and a 24-hour trading volume of $51,109,364,023.
Meanwhile, XRP continues to drop, trading at $0.277728, with a market cap of $12,660,022,128 and a 24-hour trading volume of $2,654,584,392.
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