Grayscale starts dissolving XRP trust after SEC deems XRP a security

Grayscale Investments has started the dissolution of the Grayscale XRP Trust after the Securities and Exchange Commission filed suit against certain third parties contending that XRP is a security under federal securities law.After the SEC action, some significant market participants announced measures, including delisting XRP from major digital trading platforms.That led Grayscale, the sponsor of the XRP Trust, to conclude that it will likely be increasingly difficult for U.S. investors, including the trust, to convert XRP into U.S. dollars.In connection with the dissolution, the sponsor has liquidated the trust’s XRP and intends to distribute the net cash proceeds to trust shareholders, after deducting expenses and providing appropriate reserves and subject to any applicable withholding.The trust will terminate following distribution of the net cash proceeds.XRP is currently trading at about 30 cents, down from as high as high as 77 cents on Nov. 24.Previously (Dec. 22, 2020): SEC sues Ripple; XRP