Another Cryptocurrency Manager Drops XRP Following SEC Lawsuit

Alex Dovbnya

Another Cryptocurrency Manager Drops XRP Following SEC Lawsuit

Contents

  • The fallout from the SEC lawsuit
  • Sarson Funds also removed Bitcoin SV

Boston-based cryptocurrency fund manager Sarson Funds has removed XRP from all of its products, according to a recently released investment update.

The move is directly related to the lawsuit filed against blockchain affiliate Ripple by the United States Securities and Exchange Commission (SEC) on December 22.

We are writing to inform our community that, in accordance with the SEC’s recent lawsuit against Ripple, we will be removing XRP from our Large coin, Small coin, Crypto & Income and SmartCrypto products effective today, December 23, 2020. We are liquidating all XRP positions as recent actions taken by the SEC have disqualified XRP from our investment profile.

Sarson
Image by sarsonfunds.com

The fallout from the SEC lawsuit

On December 23, Bitwise, one of the industry’s leading asset managers, hastily announced the liquidation of its $9.3 million XRP position due to the regulatory crackdown:

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

The fourth largest cryptocurrency accounted for 3.8% of the Bitwise 10 Crypto Index Fund.

Several little-known exchanges, such as OSL and Beaxy, have already delisted XRP now that the token is considered an unregistered security by the SEC, with bigger players widely expected to follow suit.

Tongues said that Coinbase was already thinking about ditching XRP as early as this week. The largest US exchange has so far neither confirmed nor denied these rumors.

Earlier this month, it filed paperwork with the SEC to launch a landmark initial public offering (IPO), meaning the company is highly unlikely to ignore the regulator’s clear stance on cryptocurrency. controversial currency.

Sarson Funds also removed Bitcoin SV

In most cases, exchanges or asset managers pull certain coins due to a lack of demand. Last year, however, Binance and other major trading platforms removed Craig Wright-backed Bitcoin SV in a show of solidarity with a Bitcoiner who was sued by self-proclaimed litigious Satoshi.

In September, Sarson Funds decided to drop Bitcoin SV because it did not meet its “eligibility requirements”.