Bitwise abandons investments in XRP after US SEC action against Ripple

The Bitwise 10 Crypto Index Fund has liquidated its holdings in XRP.

Bitwise abandons investments in XRP after US SEC lawsuit against RippleNOTÍCIAS

Bitwise Asset Management, one of the largest cryptomaniac fund managers, totally disposed of its XRP funds after the regulatory reaction against Ripple.

In an official press release, Bitwise announced on Wednesday that its XRP positions have been liquidated because its fund “does not invest in assets that have the prospect of being considered securities under federal or state bond laws.

The manager added:

“Bitwise’s decision to liquidate its position in XRP was based on the consideration of new public information from the SEC complaint.

The Bitwise crypto index fund was launched in 2017 to provide institutional investors with exposure to digital assets. Assets under management exceeded $100 million in October, thanks to large inflows from consultants, households and hedge funds.

The price of XRP has been falling freely in recent days amid revelations that the US Securities and Exchange Commission (SEC) was suing parent company Ripple for issuing an “irregular US$1.3 billion bond offering. The case, which was described in a 71-page document, is the product of a multi-year investigation by the securities regulator.

The summary of the case says:

“From at least 2013 to the present, the Defendants have Crowd Millionaire sold more than 14.6 billion units of a digital asset security called ‘XRP’, in exchange for cash or another consideration of more than $1.38 billion (‘USD’), to finance Ripple’s operations and enrich Larsen and Garlinghouse. ”

Bitwise is not the only organisation leaving the XRP negotiation. Minor Exchanges such as OSL, Beaxy and CrossTower have temporarily suspended trading or removed XRP entirely from their offerings.

Ripple CEO Brad Garlinghouse is asking investors and employees not to worry about the process, but has pointed out that the legal battle can take a long time to complete. In the meantime, RippleNET has very few commercial operations in the United States, which could theoretically allow the company to move abroad. Ripple has not indicated any plans in the short term.

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