- Grayscale, a cryptocurrency assets management and investment company, currently holds $19.5 billion in Bitcoin
- The hedge fund has simultaneously liquidated all holdings in XRP
- XRP is facing lawsuits from the U.S. Securities and Exchange Commission (SEC) and other investors
- A notable spike has been observed in digital currency investments
Grayscale Replaces XRP with Bitcoin and Ethereum
Currently the world’s leading digital asset investment company, Grayscale has increased investments in Bitcoin (BTC), bringing the fund’s investment holdings to 81.63% in BTC. Concurrently, the company has allocated 15.86% of its funds to Ethereum (ETH), 1.08% to Bitcoin Cash (BCH) and 1.43% to Litecoin (LTC).
These investments come in the wake of Grayscale distributing all of its XRP holdings to their respective claimants. This procedure was completed on Monday, following the announcement regarding suspension of XRP transactions by 15th January by Genesis Global Trading, another cryptocurrency brokerage company.
Speculations suggest that halting XRP trading is being done due to the U.S. Securities Exchange Commission’s lawsuit against Ripple.
XRP functions as the token utilised within the Ripple Network as the means for transfer of value for cryptocurrency and fiat-money.
The XRP Dilemma
Ensuing the lawsuit filed by the U.S. SEC against Ripple’s XRP tokens for being sold improperly, Tetragon Financial Group has sued the latter and has mentioned that it wishes to impose its legal right to requisite Ripple to discharge the payoff; along with a request for a temporary restraining order and an accelerated trial.
Ripple’s response has dismissed this as having no basis or merit, reiterating that no proof of XRP being unregistered security exists, directly rebutting the claims made by SEC.
Coinbase, a digital currency exchange platform, may also be looking at a potential class-action lawsuit with regards to the quantum of money earned by facilitating XRP tradings on their platform.
Purchasing Frenzy for Grayscale
The assets under management for Grayscale had recently crossed the $20 billion mark, adding to which the company’s $3.3 billion investment in BTC, BCH, ETH, and LTC brings the total to a monumental $23 billion.
As the pre-eminent hedge fund for digital assets, Grayscale’s continuous purchases indicate escalating interest in Bitcoin and Ethereum by investors. This has amassed a heavy number of tradings in the Grayscale Digital Large Cap Fund, which constructively devices tactical investment plans for allocation of cryptocurrency.