Grayscale forced to liquidate millions in XRP

Crypto giant Grayscale just wiped more than $3 million worth of XRP from one of its funds.

Grayscale’s Digital Large Cap Fund (GDLC) dumped XRP and bought Bitcoin, Ether, Litecoin, and Bitcoin Cash instead, according to a “rebalancing” notice shared on Tuesday.

Last month, the SEC sued Ripple for failing to register XRP as a security before selling over $1.3 billion worth of it in the past seven years — a move that tanked its price by 60%.

Grayscale didn’t explicitly confirm its move was inspired by the SEC’s suit, but noted its prime broker Genesis Trading will “temporarily” drop XRP support on January 15, which forced its hand.

The XRP held by GDLC was relatively small, making up less than 2% of its $290 million portfolio. Now, GDLC consists of 80% BTC and 15% Ether, with Litecoin and Bitcoin Cash making up the rest.

While GDLC no longer holds XRP, Grayscale still operates a dedicated trust for the asset, with no word as to whether it’ll suffer the same fate.

Although, Grayscale’s XRP fund ominously stopped selling shares to investors, according to a warning on its website.