Bitcoin

Grayscale sells all positions in XRP and buys Bitcoin and Ethereum

Cryptocurrency investment company Grayscale sells all XRP from its Digital Large Cap (DLC) fund, according to a statement on Twitter. The DLC fund is a cryptocurrency fund that offers exposure to the five largest crypto coins. Or yes, without XRP there are four: bitcoin, ethereum, bitcoin cash and litecoin.

Response to unrest SEC?

Grayscale mentions no reason for removing XRP from the fund, but it is plausible that this action has to do with the unrest surrounding Ripple and XRP. At the end of December it was announced that Ripple was officially indicted by the Securities and Exchange Commission (SEC), the U.S. financial watchdog.

The SEC considers XRP to be some kind of stock (security), and is suing Ripple for allegedly paying money to stock exchanges to enable XRP’s trading. Several American stock exchanges have now removed XRP, such as Coinbase and the American branch of Binance. But also Crypto.com and Bittrex have recently indicated to remove XRP from their exchanges.

It seems that Grayscale is also joining this trend for this reason, although this has not yet been officially confirmed by the investment fund.

Redistribution of the fund

However, it looks more like a symbolic statement from Grayscale, as the DLC fund consisted of only 1.5 percent of XRP. These coins have now been sold, and from the proceeds Grayscale bought bitcoin, ethereum, litecoin and bitcoin cash.

The new distribution of the fund is nearly 82 percent bitcoin, nearly 16 percent ethereum, 1.4 percent litecoin and 1.1 percent bitcoin cash. If you invest in Grayscale’s DLC fund, you will notice most of the price movements of bitcoin.