The Bitwise 10 Crypto Index Fund has liquidated its holdings in XRP.
Bitwise Asset Management, one of the world’s largest managers of cryptomoney funds, has completely divested itself of its XRP holdings amidst regulatory action against Ripple.
The price of XRP falls by 24% in 24 hours as exchanges begin to remove it from the list
In an official press release, Bitwise announced on Wednesday 23 December that its position in XRP has been liquidated because its fund „does not invest in assets that have a reasonable likelihood of being considered as securities under federal or state securities laws“.
„Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.
Bitwise’s crypto currency index fund was launched in 2017 to provide Crypto Wealth institutional investors with exposure to digital assets. The fund’s under-managed assets exceeded USD100 million in October thanks to a large influx of advisors, families and hedge funds.
The US Securities and Exchange Commission takes pity on brokers who handle stock tokens
The price of XRP has been in free fall in recent days after the US Securities and Exchange Commission revealed that it was suing parent company Ripple for carrying out a „$1.3 billion unregistered securities offering“. The lawsuit, which was described in a detailed 71-page complaint, is the culmination of a multi-year investigation by the U.S. securities regulator.
The summary of the lawsuit reads:
„From at least 2013 to the present, defendants sold more than 14.6 billion units of a digital asset value called ‚XRP‘, in exchange for cash or other consideration worth more than USD 1.38 billion, to fund Ripple’s operations and enrich Larsen and Garlinghouse.
Traditional custodians of crypto-currencies increase security to match institutional demand
Bitwise is not the only organisation that is abandoning the XRP business. Smaller exchanges such as OSL, Beaxy and CrossTower have either temporarily suspended trading with the token or removed XRP from their offerings altogether.
Brad Garlinghouse believes that Ripple can thrive even if XRP is declared a
Ripple’s CEO Brad Garlinghouse urges investors and employees not to worry about the lawsuit, but stresses that the legal battle could take a long time to end. In the meantime, RippleNET has very few business operations in the United States, which, in theory, could allow the company to move abroad. Ripple has not indicated any such plans for the near future.