This Post Was Syndicated Under License Via QuoteMedia
Cash proceeds from the Trust’s liquidated XRP will be distributed to Trust shareholders
New York, Jan. 13, 2021 (GLOBE NEWSWIRE) — Grayscale Investments, the world’s largest digital currency asset manager and sponsor (“Sponsor”) of Grayscale XRP Trust (XRP) (the “Trust”), announced that it has commenced dissolution of the Trust following the Securities and Exchange Commission’s December 22, 2020 decision to file a federal court action against certain third parties asserting that XRP is a “security” under federal securities law.
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, resulting in the Sponsor’s conclusion that it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations.
In connection with the dissolution, the Sponsor has liquidated the Trust’s XRP and intends to distribute the net cash proceeds to Trust shareholders, after deducting expenses and providing appropriate reserves and subject to any applicable withholding. The Trust will terminate following distribution of the net cash proceeds.
About Grayscale Investments®
Grayscale Investments is the world’s largest digital currency asset manager, with more than $20B in assets under management as of December 31, 2020. Through its family of 9 investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. Grayscale products are distributed by Genesis Global Trading, Inc. (Member FINRA/SIPC, MSRB Registered). For more information, please visit www.grayscale.co or follow us on Twitter, @Grayscale.