Bitwise Liquidates its XRP Position, Reinvests Proceed in Other Crypto Assets in the Fund

The firm says it “does not invest in assets that are reasonably likely to be deemed securities.”

Bitwise Asset Management has liquidated its just over $9 million worth of position in XRP. “Prior to the sale of the asset on December 22, 2020, XRP was approximately 3.8% of the Fund,” when its AUM was $242 million, says the San Francisco-based crypto fund manager.

The proceeds from the sale have been reinvested in other assets of Bitwise 10 Crypto Index Fund including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Stellar (XLM), Bitcoin Cash (BCH), Chainlink (LINK), Tezos (XTZ), and EOS.

In an official announcement that came on Wednesday, the company said the decision has been made in response to the US Securities and Exchange Commission (SEC) filing an action in the court that XRP is security and subject to the registration requirements of the federal securities laws. The company noted,

“The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws.”

As we reported, three exchanges have already suspended XRP trading. The Asia-based OSL known for its OTC trading desk has “suspended all XRP payment in and trading services on the OSL platform, effective immediately and until further notice,” tweeted the exchange.

Two small crypto trading platforms Beaxy and CrossTower have also halted trading for XRP.

This week, the price of XRP has fallen 50%, going as low as $0.296 today, a level is last seen towards the end of November, and is currently trading at $0.310.

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