An institutional investor and fund management company, Grayscale Investments, is reported to have started selling all ownership of XRP. This sale is also along with the termination of XRP fund management services through its XRP mutual fund instrument.
Grayscale Sells All XRP
The sale that has just been made is a response to the Securities and Exchange Commission’s demands against Ripple in December 2020. Although it seems too late, Grayscale has just sold its entire ownership together to liquidate its XRP mutual fund.
According to a publication issued yesterday, Grayscale has also officially liquidated the XRP trust or mutual fund that is managed. This is due to the fact that many major exchanges in America have started delisting or revoking XRP.
The reason for the sale and termination of the XRP mutual fund instrument was due to Grayscale feeling that it would be more difficult for XRP to develop in America. This difficulty will come from American investors who will find it increasingly difficult to convert XRP or their XRP mutual funds into US Dollars.
Therefore, Grayscale also feels safer if this instrument is terminated to eliminate unwanted risks in the future. Currently, all mutual funds have been liquidated and will be terminated after all investors get their funds back after deducting fees.
While Ripple is currently still under pressure from the SEC case, some governments and policy makers in other countries still support XRP. This is due to the view of those who view XRP as a cryptocurrency and not a security or stock.
XRP Still Has Supporting Countries
A report in January indicated that the UK Ministry of Finance classified XRP as an unregulated coin alongside Bitcoin and Ethereum. This makes XRP legal as it operates as a crypto currency and not e-money or stocks.
The report confirms that XRP is a tradeable coin which is a decentralized coin. This is because regulators see these coins as a medium of exchange and nothing else.
Last Wednesday, the Japanese Financial Services Authority also saw that XRP was classified as a currency and not as a security or stock. So Japan still supports XRP’s growth, making it disagree with the SEC and Grayscale.
Japan and the UK are two countries that are still very vocal to support Ripple regarding its case with XRP. It is possible that many other countries, especially in Asia, will start to become more vocal in supporting Ripple.
Unfortunately, as a result of this case XRP continues to look down. XRP itself is currently hovering around $ 0.28 which is a depreciation of more than 42% in the last 30 days. However, due to the support of several countries together with the change in the policy seat holder in the SEC, everything is subject to change.
