Grayscale Removes XRP From its DLC Fund, Buys More BTC and ETH

Grayscale, the crypto fund manager today announed the delisting of XRP from its Grayscale Removes XRP From its Digital Large Cap Fund (DLC) post the quarterly review. The fund manager also notified that it has utilized the cash proceeds from the sale of XRP towards buying more bitcoin, ethereum, and other assets.

DLC Fund is a passive, rules-based strategy that seeks to provide exposure to the large cap segment of the digital asset class (70% target coverage

3/ $XRP was removed following DLC Fund's Quarterly Review (12/31/20). No others assets qualified for inclusion. The below table highlights DLC Fund’s weightings as of January 4, 2021: $BTC $ETH $BCH $LTC pic.twitter.com/g3QQEf0kd8

— Grayscale (@Grayscale) January 5, 2021

Grayscale in its official press release noted that they have removed XRP from the DLC funds which had a weightage of about 1.46%. The official press release noted,

The Authorized Participant of the Fund, announced that effective January 15, 2021, at 5 p.m. ET, it would temporarily suspend trading for XRP. The firm has sold the XRP holdings to purchase additional tokens of the remaining Fund Components in proportion to their respective weightings.

Grayscale DLC Fund Holds Over 80% in Bitcoin

The Grayscale DLC fund currently holds  81.63% Bitcoin (BTC), 15.86% Ethereum, 1.08% Bitcoin Cash, and 1.43% Litecoin where each tradable share represents  0.00047489 Bitcoin, 0.00287011 Ethereum, 0.00047537 Bitcoin Cash, and 0.00167314 Litecoin.

XRP’s delisting spree has continued ever since the SEC lawsuit against Ripple and two of its executives for sale of unregistered security i.e XRP. The lawsuit prompted several crypto exchanges especially those serving the US customers to delist XRP from their platforms. Last week there were rumors of Grayscale dumping large portions of their XRP holdings, however, a spokesperson from the company rubbished all such claims and the crypto fund manager even went on to purchase another 12 million units of XRP.

It is currently unclear why did the popular fund manager decide to buy more XRP on New Year after the quarterly review on 31st December and then again sell XRP from its DLC fund on January 4.

After increasing their position in XRP, they've decided to remove XRP from their fund ???? https://t.co/tpEW5NU9Pa

— THE XRP BULLY (@THEXRPBULLY) January 5, 2021

bybt Data Still Shows Grayscale Holding Massive Amounts of XRP

While the confusion still lingers what went behind the decision to buy more XRP despite the plans of dumping its XRP holding from DL fund were finalized on December 31st itself. The bybt data was also involved in a similar confusion last week when its data showed Grayscale dumping a significant portion of its XRP holdings. Now the current bybt data suggest Grayscale still holds a massive amount of XRP on its sheet.

At present, it seems that the decision to dump RP was specific to the DLC fund only while Grayscale continues to hold nearly 39 million XRP on its sheet.