Grayscale: Majority of holdings in XRP and XLM sold off
The digital asset manager has sold a large portion of its holdings in the two coins.
Grayscale Investments, the world’s largest digital asset manager, has reportedly sold off a significant portion of its holdings in XRP and XLM.
Data from Bybt, a cryptocurrency futures trading platform, shows that Grayscale’s XRP holdings fell by more than 9.18 million on 29 December. This brings the total value of Immediate Bitcoin the position to just 26.45 million XRP. At the time of going to press, these have a value of $5.77 million.
On the same day, Grayscale reportedly sold over 9.74 million Stellar Lumens (XLM), bringing its holdings to 9.19 million XLM, or US$1.27 million at present.
Grayscale’s assets under management currently stand at US$19.26 billion
Bitcoin (BTC) accounts for 87 percent of the total.
Grayscale sold the XRP shortly after the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs. The news triggered a wave of denotations on major exchanges, including Coinbase and Bittrex. The XRP price plummeted 60 percent as a result.
Ripple has promised to defend itself against the SEC’s allegations and has called on market participants not to consider XRP a security until they hear its side of the story.
With all the regulatory attention surrounding Ripple, it’s probably easy to understand why Grayscale is distancing itself from the cryptocurrency. However, it is not entirely clear why the fund manager has also reduced his XLM holdings at the same time.
This could be a temporary reallocation, as recent data shows. Grayscale actually increased its position in XRP and XLM after their recent price drops.
Stellar was co-founded by Jed McCaleb, a software developer who was part of the founding team of Ripple. He left the project in 2014. As of 9 December, McCaleb’s public XRP wallet still held over 251 million XRP. He is said to have sold hundreds of millions of US dollars worth of XRP since the beginning of 2016.
Grayscale and Stellar have not yet responded to Cointelegraph’s requests for comment.