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.

AccessTimeIconJan 13, 2021 at 9:16 p.m. UTC
Updated Sep 14, 2021 at 10:56 a.m. UTC

Grayscale Investments, the world’s largest digital currency asset manager, announced it has begun dissolution of its Grayscale XRP Trust following the U.S. Securities and Exchange Commission’s lawsuit against Ripple Labs alleging the XRP token is a security under federal securities law.

  • 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.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC