Grayscale Investments Begins Dissolution of XRP Trust Citing Ripple SEC Suit
Cash proceeds from the Trust’s liquidated XRP will be distributed to Trust shareholders, Grayscale said.
Jan 13, 2021 at 9:16 p.m. UTCUpdated Sep 14, 2021 at 10:56 a.m. UTC
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- Cash proceeds from the trust’s liquidated XRP will be distributed to shareholders, Grayscale said, without providing estimates on the proceeds.
- Jan. 8. SEC filings indicate the XRP trust raised $19.2 million from 70 investors over its nearly three-year run. It was not clear how much the fund was worth at liquidation.
- Grayscale blamed the move on the SEC's December 2020 suit against XRP's issuer, Ripple Labs, which has banked $1.3 billion in token sales since 2013. That lawsuit has created a hostile market environment for XRP.
- "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," Grayscale said.
- Earlier January, Grayscale removed XRP from its large-cap crypto fund.
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