Grayscale Investments, the leading digital currency asset manager in the world, announced it begins the process of dissolution of its XRP Trust after the U.S. Securities and Exchange Commission’s opened a lawsuit against Ripple Labs. The regulator argues that under the federal securities law the XRP token is a security.
Cash assets from the trust’s liquidated assets will be distributed between shareholders, Grayscale shared, without providing any numbers on the proceeds.
January 8th SEC filings revealed the XRP trust accumulated $19.2 million from 70 different investors over its three-year existence. It is not entirely clear what the fund is worth at liquidation.
Grayscale explained the move with the recent SEC’s lawsuit against XRP’s issuer, Ripple Labs that has accumulated $1.3 billion since the token’s inception in 2013. That lawsuit has instigated a hostile market attitude towards XRP.
“It will probably be even more difficult for U.S. investors, not excluding our Trust, to convert XRP into U.S. dollars, and thus continue its operations,” Grayscale noted.
In early January, Grayscale delisted XRP from its crypto fund.
