Grayscale Sells XRP to Buy Bitcoin and Ethereum
Grayscale, the world’s largest crypto asset management firm announced that it has removed XRP from its investment fund. The company added that it has used the new funds to buy other crypto assets including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
According to the official announcement, Grayscale Digital Large Cap Fund (DLC Fund) decided to remove XRP in its quarterly review and mentioned that no other digital asset qualified for the inclusion. The company also outlined the current composition of the fund which includes Bitcoin (81.6%), Ethereum (15.9%), Litecoin (1.4%), and Bitcoin Cash (1.1%).
“Prior to the sale of XRP on January 4, 2021, XRP was approximately 1.46% of the Fund. As of the end of the day on January 4, 2021, the Fund Components were a basket of 81.63% Bitcoin (BTC), 15.86% Ethereum (ETH), 1.08% Bitcoin Cash (BCH), and 1.43% Litecoin (LTC) and each Share represented 0.00047489 Bitcoin (BTC), 0.00287011 Ethereum (ETH), 0.00047537 Bitcoin Cash (BCH), and 0.00167314 Litecoin (LTC). The Fund does not generate any income and regularly distributes Fund Components to pay for its ongoing expenses. Therefore, the amount of Fund Components represented by each Share gradually decreases over time,” Grayscale mentioned in the official announcement.
The recent announcement came after several cryptocurrency exchanges worldwide announced XRP delisting citing the regulatory uncertainty regarding the status of the world’s fifth-largest cryptocurrency. Bitwise, one of the leading crypto asset management firms, also announced the liquidation of nearly $9.3 million worth of XRP in December after the SEC’s lawsuit. Genesis Global Trading, one of the authorized partners of the Grayscale fund also announced the temporary suspension of XRP from 15 January 2021.
According to the latest data provided by Grayscale, the total value of the company’s crypto assets under management crossed $23 billion on Wednesday. Grayscale now has more than 600,000 Bitcoin with a total value of nearly $20.5 billion. The company’s Ethereum holdings are valued at $3.2 billion. The company’s third most valuable asset is Litecoin with a total value of $180 million.
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