Grayscale Investments is shutting down its Grayscale XRP Trust and liquidating its XRP holdings in order to distribute cash proceeds to the trust’s shareholders. The firm cited difficulty in converting XRP into U.S. dollars following the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple.
Grayscale Axes XRP Trust
Grayscale Investments announced Wednesday that it is commencing the “dissolution of Grayscale XRP Trust.”
The company detailed that on Dec. 22, the U.S. Securities and Exchange Commission (SEC) decided “to file a federal court action against certain third parties asserting that XRP is a ‘security’ under federal securities law.” It added:
In response to the SEC’s action, certain significant market participants have announced measures, including the delisting of XRP from major digital asset trading platforms.
This has resulted in Grayscale’s “conclusion that it is likely to be increasingly difficult for U.S. investors, including the [Grayscale