Bitwise Asset Management in an official statement announced on Wednesday that the Bitwise 10 Crypto Index Fund has liquidated its position in XRP. The move came after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit alleging that XRP is a security subject to the registration requirements of the federal securities laws.
Bitwise Asset Management is one of the leading crypto fund managers since 2017. In recent reports, it has now surpassed USD100 million in assets under management (AUM).
Bitwise further stated in regards to its recent action that it (Bitwise 10 Crypto Index Fund) does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws.
The Fund had a holding 3.8% XRP before its sale last December 22. The proceeds of the sale were reinvested in other portfolio assets.
As stated in the lawsuit filed by SEC, Ripple allegedly raised over $1.3 billion through an unregistered, ongoing digital asset securities offering since 2013. The complaint alleges that the defendants failed to register their offers and sales of XRP or satisfy any exemption from registration, in violation of the registration provisions of the federal securities laws. In a statement made by Stephanie Avakian, Director of the SEC’s Enforcement Division, he said:
“We allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system.”
Price Plummets as Exchanges Delist XRP
Hailey Lennon, a partner at Anderson Kill, stated in his recent statement:
“You know who is at risk if XRP is considered a security? EVERY EXCHANGE THAT LISTS XRP.”
Cryptocurrency trader Alexander Saunders also shared his views on the recent Ripple conflict with the SEC.
“With a plethora of coins offering enormous upside. It’s ludicrous to emotionally attach yourself to $XRP now they are being sued by the SEC. Exchanges will be delisting & the financial services industry won’t dare touch it until resolved. Good investors admit things changed & move on.”
XRP price plunges at 41% in Binance only three days after the news of the lawsuit. Also, it is now faced with delisting from other crypto exchanges which resulted in a further decline in its price. Exchanges like OSL, Beaxy, and CrossTower have either temporarily stopped trading or removed XRP. In recent data by Coinmarketcap, XRP price plummeted by 42% in the last 24 hours.
As Ripple faces a new lawsuit, the price of XRP has suffered a major blow. After recording its all-time high at $3.84 back in January of 2018, its price had tremendously dropped. As of writing, XRP is currently trading at $0.269 which is more than 186% lower from its recorded 30-day all-time high at $0.77 last Nov. 20. Will the price of XRP ever see a rebound? With the price of BTC (bitcoin) continuing on its crazy swings, will there be any altcoin season this year?