Bitwise Update: Bitwise 10 Crypto Index Fund Liquidated Position in XRP

Bitwise Asset Management, a provider of crypto-asset index and beta funds, announced on Wednesday the Bitwise 10 Crypto Index Fund (OTCQX: BITW) (the Fund) has liquidated its position in XRP. Bitwise revealed that on Tuesday, December 22nd, the U.S. Securities and Exchange Commission (SEC) filed an action in the United States District Court for the Southern District of New York alleging, among other things, that XRP is a security subject to the registration requirements of the federal securities laws.

“The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws. Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.”

Bitwise further revealed that prior to the sale of the asset, XRP was approximately 3.8% of the Fund. The Fund liquidated its position and reinvested the proceeds in other portfolio assets.

“Bitwise is issuing this release in accordance with the disclosure obligations of OTCQX. The Fund’s Annual Report, published to satisfy the Alternative Reporting Standard disclosure guidelines for OTCQX and OTCQB, discloses the significant risks associated with an investment in the shares.”

Bitwise went onto add that investors are encouraged to read the Annual Report and carefully consider these and other risks, including the fact that if any of the assets held by the Fund are determined to be a “security” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for the Fund and the BITW shares.

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