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Grayscale Refutes Claims It Has Liquidated XRP And XML

Grayscale Ethereum Trust Files with The SEC to Receive Reporting Status
Grayscale Ethereum Trust Files with The SEC to Receive Reporting Status

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A few days ago, there were reports that Grayscale has liquidated most or all of XRP’s tokens as a precaution towards any price volatility that may affect its clients. The report revealed that Grayscale’s decision was taken due to the charges labeled against Ripple and its executives by the Securities and Exchange Commission (SEC).

Grayscale refutes report

A Grayscale spokesperson has refuted the report, saying that the fund did not dump massive stakes of XLM and XRP as reported. The spokesperson also said the Bybt data that shows heavy liquidation of the Stellar Lumen and XRP is absolutely false and nothing of such happened.

The public Bybt data, on Wednesday, showed that the Grayscale fund manager cut down its investment of XRP by over 9 million units while its exposure to XLM was also cut by 9.74 million units. The Bybt data also revealed that the net change in holdings occurred on Tuesday over 24 hours. The data was accessed before Grayscale’s daily asset under management report was released. The report noted that Grayscale had apparently liquidated significant amounts of XLM and XRP.

At the time of the report on Tuesday, there were unsuccessful efforts to reach Grayscale for comments about the situation. However, the fund manager, via a spokesperson, cleared the air about the report.

“None of the Grayscale investment products operate a redemption program,” the spokesperson said.

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He further stated that the change in its investment product’s net holding only occurs if there are accrued management fees or inflows from the private placement.

Grayscale said a fall in XRP price caused a fall in value

The spokesperson also pointed out that the report about the firm deliberately selling off large amounts of its investment products is not true. Any reduction or fall in the USD value of the XRP in Grayscale may have been the result of a reduction or fall in XRP’s USD price, the spokesperson added.

However, the Bybt data feed is still showing a huge XLM and XRP outflow from Grayscale in the past week, with the amounts appearing under the “24-hour change” column on Wednesday.

While Grayscale may not have admitted openly that it had shed some of its investments on XRP, other fund managers have actually reduced their investments in the token. Although Stellar doesn’t have such regulatory concerns, the decision could be a precautionary measure giving that Jed McCaleb, a founder of Ripple, also co-founded Stellar.

The pre-trial of Ripple and its executives will start on February 22. But the company has said despite the lawsuit, it will continue to operate in the United States.

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