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Grayscale ditches XRP

Photo of: Joseph Stone
by Joseph Stone

Grayscale’s Digital Large Cap Fund no longer contains XRP, compared to 1.46% previously. The asset manager, presumably in connection with the SEC complaint, is reallocating the proceeds of the sale to BTC, BCH and LTC.
Given the fall of XRP and its uncertain future, Grayscale throws in the towel. Until now, the crypto-asset manager proposed to investors to gain exposure to cryptocurrencies through a fund.

Digital Large Cap Fund was a basket of cryptocurrencies, including XRP. Before Ripple’s tokens were liquidated, they accounted for 1.46% of this fund. This share is now 0%. Grayscale sold them on January 4.

At the same time, the company was reinvesting by acquiring other cryptocurrencies that were already part of the Digital Large Cap Fund. Thus, it increased its capital in Bitcoin, Bitcoin Cash and Litecoin. The fund is now 81.63% owned by BTC.

It also includes Ether (15.86%), Bitcoin Cash (1.08%) and Litecoin (1.43%). The withdrawal of XRP is therefore not compensated by the introduction of a new crypto-active. No other assets qualified for inclusion in the fund,” explains Grayscale.

This strategy underlines once again the preference given by the manager and its investors to Bitcoin. Grayscale now has over $20 billion in crypto assets under management.

Its Bitcoin fund alone weighs nearly $17.5 billion. And by December, its growth rate was accelerating. According to Coin98 Analytics, Grayscale was buying nearly three times more BTC over the period than the amount added to the market by miners.

For Ripple, Grayscale’s withdrawal is another blow. It further limits the participation of institutional investors in XRP. Especially since he is not the first fund manager to make such a decision.

Bitwise Asset Management was the first to do so, before December 25. Various exchanges in the United States, including the main ones in terms of transaction volumes, are also suspending XRP.

Uphold is clearly the exception. The exchange and payment service took a decision against the grain this week. For the latter, there is no question of suspending XRP before a court decision.