Bitwise Liquidates XRP Holdings Due to SEC Lawsuit Against Ripple

Bitwise Asset Management, a crypto fund manager since 2017, has announced that the Bitwise 10 Crypto Index Fund (OTCQX: BITW) has liquidated its position in XRP.

A Tweet indicated that Bitwise had held an emergency meeting yesterday where the decision was taken to liquidate the crypto.

Bitwise said this was due to the enforcement action filed by the Securities and Exchange Commission alleging Ripple’s sale of 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, according to the company. Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.

Prior to the sale of the asset on December 22, 2020, XRP was approximately 3.8% of the Fund. The Fund reportedly liquidated its position and reinvested the proceeds in other portfolio assets.

The decision by Bitwise is joined by several digital asset exchanges deciding to halt all trading in XRP until further notice.

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