Crypto asset management firm Grayscale Investments terminates XRP Trust a week after selling all XRP in the Digital Large Cap Fund.
Grayscale’s announcement yesterday directly refers to the $ 1.3 billion lawsuit filed by the U.S. Securities and Exchange Commission against Ripple Labs, the creative force behind cryptocurrency, and CEO Brad Garlinghouse and Chairman Chris Larsen last month. The SEC targeted defendants for their role in the sale of XRP, which the company regards as an unregistered security.
According to yesterday’s press release, “It will be increasingly difficult for US investors, including Trust, to convert XRP to US dollars, and therefore for Trust to continue its activities.” Grayscale also stated that the cash proceeds from the Trust’s liquidated XRP will be distributed to Trust shareholders. Once the distribution process is complete, the firm will terminate the XRP Trust.
The Grayscale development came as another bad news for Ripple and XRP, which were removed from the list by exchanges like Coinbase. But things are different on the Asian side. Ironically, while the SEC insists that XRP is a security, regulators in non-US countries such as Japan state that XRP is a currency. According to yesterday’s report by The Block, the Japanese Financial Services Agency (SEC’s equivalent) said XRP is a cryptocurrency, not a security.
Despite Grayscale’s move, XRP is trading near $ 0.30. Surprisingly, the price of XRP no longer appears to respond to delisting or liquidation announcements.