Grayscale announced the dissolution of its XRP trust
All cash proceeds will be distributed to the XRP Trust shareholders
XRP is rather stable at the $0.28 – $0.30 price area
Its number 4 spot in terms of market cap, could be under threat from Polkadot (DOT)
Grayscale Investments has announced that it will be commencing the dissolution of its XRP Trust due to the ongoing regulatory uncertainty regarding the digital asset and the SEC lawsuit against Ripple. Furthermore, all proceeds from the liquidation of the Grayscale XRP Trust will be distributed amongst its shareholders.
The team at Grayscale further elaborated on why the XRP trust was liquidated.
Grayscale Investment…[has] 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.
XRP Attempts to Maintain the $0.30 Support
With respect to price, XRP has been experiencing sideways movement between $0.31 and $0.28 for the better part of this week. At the time of writing, XRP is trading at $0.298 in what looks like an attempt to flip the crucial $0.30 price area into support.
XRP has had a remarkable rebound from the $0.17 dip experienced on the 29th of December and as a result of investors selling their bags due to the SEC lawsuit against Ripple. The decline in value to $0.17 had resulted in XRP losing the number 4 spot on Coinmarketcap to Litecoin.
However, XRP has since regained this position although Polkadot is hot on its heels and could very well edge out the remittance coin. Approximately $3.253 Billion in market cap separates the two as seen in the following screenshot courtesy of Coinmarketcap.