The largest crypto asset manager, Grayscale, has announced to termination of XRP from the Digital Large Cap Fund. The asset manager has decided to remove XRP after its partner exchanger Genesis Trading terminated XRP trading on a temporary basis.
Removal from DLC Fund
XRP represented 1.46% of Grayscale’s portfolio, which then reduced to nothing after the asset manager removed it from its Digital Large Cap Fund. “$XRP was removed following DLC Fund’s Quarterly Review (12/31/20). No others assets qualified for inclusion,” it added.
The primary reason behind removing the digital asset was the legal fight between San Francisco-based Ripple and Securities and Exchange Commission (SEC). The legal battle was initiated after the US regulatory authority filed the case against the blockchain payment processor. The US regulator accused Ripple of selling unregistered securities.
Almost all of the cryptocurrency exchanges in the United States have terminated XRP due to legal pressure. These exchanges include Binance.US, Coinbase, Bitstamp, Bittrex, and Crypto.com.
Grayscale, however, does not mention anything about SEC actions. Instead, it has removed the coin because its partner platform Genesis Global Trading has stopped XRP trading services for users.
After reducing XRP, the asset management company has dedicated the capital to other cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Bitcoin represents 80% of total Grayscale funds, while the second-largest cryptocurrency Ethereum represents 15%.
Legal Battle between Ripple and SEC
Securities and Exchange Commission has started to crack down on crypto projects running on an illegal basis. The governments have fear as the crypto market is booming. As of press time, the crypto market’s total market cap is standing at $888 billion. The $1 trillion figure is not a big deal for the short-term trend at the current pace. Bitcoin has sustained itself above $31,000 and may witness new high levels. Due to exponential growth over the recent few weeks, it is possible that the US dollar will suffer. In order to support the US dollar, the government can take serious steps to control the dominance of Bitcoin over the US dollar.
Despite backlash from the crypto community and regulators, XRP still has the fourth-largest crypto-asset status. After crashing to a great amount, it then got a bullish blow from investors. For instance, the digital coin has surged by 22.50% over the last seven days. It is currently trading at $0.22 after decreasing by 2.16% over the day.