Grayscale Investments Clears Out XRP in Its Digital Large Cap Fund

Grayscale has sold all of its XRP holdings to purchase bitcoin, ether, and other crypto assets. In an announcement made earlier today, Grayscale made it known that the firm has sold all of its XRP tokens from the Digital Large Cap Fund.

Grayscale Sells Off All XRP Holdings

There appears to be more gloom for XRP as Grayscale Investment announced that it had sold off all XRP tokens it was holding in its Digital Large Cap Fund.

This news comes days after a report emerged that Grayscale had purchased a large number of XRP tokens at a much lower price. According to data from Cryptowhale, the firm had bought over 12 million XRP tokens on New Year’s eve.

However, in what appears to be a twist in the decision of the leading crypto investment company, the firm has now decided to totally liquidate all XRP holdings in the large-cap fund.

This decision might be connected to Genesis Global Trading, the solely authorized participant of the fund, who earlier announced that it would be suspending XRP tradings on its platform. Genesis cited the impending lawsuit between Ripple and Securities and Exchange Commission (SEC) as to why it has decided to stop trading the crypto asset from January 15, 2020.

Grayscale made it known that the proceeds from the liquidation have been used to purchase other crypto assets like bitcoin (BTC), bitcoin cash (BCH), and litecoin (LTC).

XRP Token Is Still Suffering the Effects of the Impending Litigation Against Ripple Labs

Since reports emerged that the U.S. SEC was going to be suing Ripple, the regulator alleged that the firm was offering a $1.3 billion unregistered security offering.

Due to this litigation, many crypto exchanges have started delisting the token from their platform. Bitwise, Coinbase, Binance, and a host of other major crypto exchanges have either suspended or totally stopped trading the token on their platform.

Another effect of the lawsuit is the tumbling of the price of the crypto asset since the legal issues emerged. Since then, the price of XRP has dipped below $0.20 which equates to a 70% drop.

Ripple has vowed to stand up against the SEC, noting that the allegations against it remain false and unfounded. The firm also stated that it was going to continue supporting its operations and products that were outside the United States.

What do you think about Grayscale selling it’s XRP holdings from the Digital Large Cap Fund? Let us know what you think about this subject in the comments section below.

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Major Exchanges Experience Technical Issues as Bitcoin Price Drives in Massive Traffic

Bitcoin has finally broken the $20k resistance level. The record-breaking price caused massive traffic on a myriad of crypto exchange platforms like Binance and Coinbase.

Bitcoin All-Time Price High Causes Issues on Binance

For weeks now, many crypto enthusiasts have been hoping that the price of bitcoin would scale the $20k resistance barrier. That record was broken recently, as bitcoin (BTC) not only broke the $20k resistance but also got as high as over $23k within the last 24 hours.

As a result of this all-time high (ATH) price, crypto exchanges around the globe witnessed a massive surge in their traffic. Even some of the biggest and most popular platforms were overwhelmed with the amount of traffic they were able to draw within this period. Binance and Coinbase, in particular, had the most traffic, which caused their platforms to see some issues.

The chief executive officer of Binance, Changpeng Zhao (CZ), in a tweet, told his platform users that the exchange was currently experiencing a scaling issue that was going to be fixed immediately. According to him, the platform had underestimated the demand for the crypto asset, which resulted in difficulties for his trading exchange.

To mitigate against any future recurrence of such issues, he added that the firm was adding “a lot more servers.”

Still some latency issues here and there. Working on it, all hands on deck. 🙏

Bitcoin goes up 5%, traffic goes up 30x. https://t.co/lxSAX4lx3B

— CZ Binance (@cz_binance) December 16, 2020

Zhao also noted that Binance was experiencing some latency issues, but the exchange is doing its best to remove the problem. He went on to confirm that the traffic is not unusual because whenever the price of the coin moves by at least 5%, there is always a surge in traffic.

Coinbase Also Experiences Issues

Coinbase also experienced similar issues to the one facing Binance. The firm made an announcement regarding this issue and went on to resolve the problem almost immediately.

While that of Binance was a one-off, Coinbase has a history of recurring issues on its platform which it usually tags as “connectivity issues.”

The firm’s CEO, Brian Armstrong, has made it known several times that the firm was assiduously working to remove any such problem on its exchange.

Apparently, the firm tends to experience technical issues when its website has a higher engagement rate.

What do you think about the major crypto exchanges experiencing issues when crypto prices run high? Let us know what you think about this subject in the comments section below.

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Bitcoin Fund Debuts on Canada’s Biggest Stock Exchange

CI Global Asset Management has begun to trade on the Toronto Stock Exchange in Canada. The fund’s initial public offering managed to raise $72 million and units commenced trading in both U.S. dollars and Canadian dollars.

CI Global Fund Begins Trading

CI Global Asset Management has made it known that it has completed the initial public offering of the CI Galaxy Bitcoin Fund. According to the press release, $72 million was raised from the listing.

Initially, the fund had different classes such as class A, class C, and class F. However, regardless of their class, each share unit was sold for $10. But, when the offerings were closed, classes C and F had collapsed into a class A share.

With trading set to begin today, all the shares have been put for trading on the Toronto Stock Exchange (TSX). Investors can trade the shares against both United States Dollars and the Canadian dollar. BTCG.U and BTCG.UN are the tickets for the trade.

The announcement further went on to reveal that the fund would be an investment option that would give holders an opportunity to invest in bitcoin via an institutionally backed fund platform.

The fund’s bitcoin would be stored in a cold storage system which is the preferred method of protection offered by some of the leading protocols in the crypto space.

Galaxy Digital to Act as Fund Sub-Adviser

A leading crypto firm that has made its name as an intermediary between the crypto industry and corporate institutions, Galaxy Digital, would act as the sub-adviser of CI’s new bitcoin fund.

As the sub-adviser, Galaxy Digital would have the right to carry out trades on behalf of the Fund in the market. The press release further stated that the fund was going to be investing in bitcoin directly. While the bitcoin holdings of the fund are going to be priced using the Bloomberg Galaxy Bitcoin index tool.

CEO, Kurt MacAlpine who is the CEO of CI Galaxy Bitcoin Fund parent’s company CI Financial Corp., said that the fund would give investors the benefit of having to choose from an array of quality investment options.

In his words the fund would be:

“Providing investors with the benefits of a broad choice of high-quality alternative investment options.”

Bitwise Starts Strong in the United States

A recently launched crypto fund in the United States, Bitwise, has had one of the strongest starts in the history of crypto-based funds in the country. According to reports, the crypto fund was able to record $67 million of its shares being traded within the first 72 hours of its emergence.

The Bitwise fund, however, currently operates as a trust because it is yet to get the express approval of the US financial authorities, Securities and Exchange Commission (SEC).

What do you think about the bitcoin fund trading on TSX? Let us know what you think about this subject in the comments section below.

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