Bitwise crypto index fund liquidates its XRP position
Crypto fund manager Bitwise announced that the firm’s Bitwise 10 Crypto Index Fund has liquidated its position in XRP.
Recently, US Securities and Exchange Commission accused Ripple and two of its executives that they allegedly raised over $1.3 billion through an unregistered, “ongoing” securities offering.
Bitwise’s decision was a result of the SEC charges. The firm said that the crypto index fund “does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws.” It added:
Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.
Prior to this development, XRP was approximately 3.8% of the Bitwise fund. The fund liquidated its position and reinvested the proceeds in other portfolio assets.
SEC has charged Ripple for allegedly raising funds, beginning in 2013, through the sale of XRP in an “unregistered securities offering to investors in the US and worldwide.” SEC claimed that Ripple allegedly distributed billions of XRP in exchange for “non-cash consideration, such as labor and market-making services.” According to the filing, co-founder Chris Larsen and CEO Brad Garlinghouse also “effected personal unregistered sales of XRP totaling approximately $600 million.”
Further, before the sale of the asset XRP was approximately 3.8% of the Fund. The firm said that the Fund liquidated its position and “reinvested the proceeds in other portfolio assets.”