The Bitwise Crypto Index fund announced that they are selling XRP assets and purchasing other cryptos on the index. 75% of the purchases are Bitcoin and 13% consists of Ethereum.
SEC’s XRP case changed things
Among the cryptocurrencies that the fund holds the most, XRP ranked third, but now this tuar has been converted to other cryptocurrencies as Bitwise points out:
Bitwise 10 Crypto Index Fund does not invest in assets that are not considered securities under federal or state securities laws.
Bitwise’s decision to liquidate its position in XRP was based on an assessment of new public information from the SEC’s complaint.
Prior to the sale of the asset on December 22, 2020, XRP was about 3.8% of the Fund. The fund liquidated its position and reinvested the proceeds in other portfolio assets.
What is Bitwise?
Bitwise 10 Crypto Index Fund (BITW) trades more than $ 20 million in daily volumes on the OTC Markets, reaching a market value of $ 650 million.
The fund has doubled its assets under management since it started trading more than a week ago.
It has a style like GrayScale where accredited investors can ‘shrink’ shares at a net asset value of about US $ 20, which are then freely traded on the OTC Markets after a holding period.
These stocks are traded at approximately 4 times their core value. However, Ripple is no longer part of this index. Bitcoin and Ethereum have taken its place.