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October 5, 2022
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Bitcoin

– Bitcoin, cryptocurrencies and blockchain technology.

Grayscale Investments, the world’s largest cryptocurrency investment fund announced on Tuesday that it liquidated its XRP positions and used the remaining funds to purchase more Bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC).

Grayscale is getting rid of XRP

This decision influenced the Digital Large Cap Fund, which is an asset weighted by market capitalization, providing exposure to the largest cryptocurrencies according to the market cap. The sale of XRP took place on Monday, less than a week after Genesis Global Trading, an authorized participant in the fund, announced that it would soon temporarily suspend XRP trading. These likely decisions were made in connection with a lawsuit filed by the US Securities and Exchange Commission against Ripple.

Genesis Global Trading plans to halt all XRP trading on January 15th.

Before Monday’s sale, XRP represented approximately 1.46% of the Digital Large Cap Fund. The fund has 81.63% BTC, 15.86% Ethereum (ETH), 1.08% BCH and 1.43% LTC. Each share represented 0.00047489 BTC, 0.00287011 ETH, 0.00047537 BCH and 0.00167314 LTC.

Grayscale confirmed its new fund composition in a series of Twitter feeds on Tuesday.

The fund manager said XRP was removed after the quarterly DLC review. He added that no other asset would qualify for inclusion in the fund.

More recently, Grayscale broke the $ 20 million barrier in assets under management for the first time. Thus, the company highlighted the huge institutional demand for Bitcoin and other digital currencies. Grayscale buys Bitcoin in huge amounts. At least one indicator shows that Grayscale purchased almost three times more BTC than it was mined in December.

Poor XRP prospects

While XRP has been among the top cryptocurrencies in recent months, its outlook looks rather dim. A wave of delisting among US stock exchanges caused the XRP token to drop dramatically. One of the first huge funds to sell out its Ripple wallets was Bitwise Asset Management, which sold out before Christmas.

Ripple has promised to fight the SEC accusations. A statement released last week by Ripple said the company would continue to operate and support its products outside of the United States.

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