Grayscale Investments Clears Out XRP in Its Digital Large Cap Fund

There appears to be more gloom for XRP as Grayscale Investment announced that it had sold off all XRP tokens it was holding in its Digital Large Cap Fund.

This news comes days after a report emerged that Grayscale had purchased a large number of XRP tokens at a much lower price. According to data from Cryptowhale, the firm had bought over 12 million XRP tokens on New Year’s eve.

However, in what appears to be a twist in the decision of the leading crypto investment company, the firm has now decided to totally liquidate all XRP holdings in the large-cap fund.

This decision might be connected to Genesis Global Trading, the solely authorized participant of the fund, who earlier announced that it would be suspending XRP tradings on its platform. Genesis cited the impending lawsuit between Ripple and Securities and Exchange Commission (SEC) as to why it has decided to stop trading the crypto asset from January 15, 2020.

Grayscale made it known that the proceeds from the liquidation have been used to purchase other crypto assets like bitcoin (BTC), bitcoin cash (BCH), and litecoin (LTC).

XRP Token Is Still Suffering the Effects of the Impending Litigation Against Ripple Labs

Since reports emerged that the U.S. SEC was going to be suing Ripple, the regulator alleged that the firm was offering a $1.3 billion unregistered security offering.