Why is it difficult to buy XRP

Crypto Asset Manager Grayscale: Sell While You Can

While the Bitcoin increased by around ten percent on Thursday and significant gains were also made with most of the Altcoins, the coin XRP from Ripple was almost two percent in the red. After the US Securities and Exchange Commission had set their sights on the project, the asset manager Grayscale is now drawing conclusions.

As the company announced on Wednesday, the Grayscale XRP Trust has already been dissolved and the cryptocurrency holdings have been completely sold. The proceeds from the sale, net of fees, will be paid to the shareholders and the trust will be closed.

The background to this is the assessment by the US Securities and Exchange Commission that XRP is a security - but has not yet been registered and regulated as such. Therefore, the authority filed a lawsuit against operator Ripple Labs in New York at the end of December, their former and incumbent CEOs, Christian Larsen and Bradly Garlinghouse.

Worry about a collapse in liquidity

In addition to a sharp slide in the price, this has also led to XRP being banned from trading on the first exchanges, including on the large US crypto exchange Coinbase. Apparently at Grayscale they fear that this was just the beginning.

"For US investors - including our trust - it is likely to become increasingly difficult to exchange XRP for US dollars," said the asset manager's statement. That also calls into question the continuation of the corresponding plant product.

Most recently, the Grayscale XRP Trust managed around $ 11.3 million. Thus it is or was one of the smallest products in the portfolio of the asset manager. For comparison: The Grayscale Bitcoin Trust has almost 21 billion of the total of around 24.7 billion dollars in assets under management.

Space for new, trendy coins

The SHAREHOLDER bitcoin report already reacted to the high uncertainty at Ripple in the sample portfolio the previous week and used the interim recovery from the low of around $ 0.18 to limit the losses.

In return, based on the tried and tested TSI system, four particularly trendy cryptocurrencies were selected, which are allowed to keep the top performers Bitcoin (+278 percent since custody account) and THETA (+576 percent), as well as the other values ​​in the custody account, company.

The model portfolio can be replicated via direct investments via crypto exchanges. A new entry is also possible at any time. More information about the bitcoin report and the exclusive sample depot can be found here.

Note according to §34 WPHG to justify possible conflicts of interest:

The chairman of the board and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from the price development that may result from the publication: Bitcoin.

Author Nikolas Kessler has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.

Shares or derivatives that are discussed / mentioned in this article are in the "SHAREHOLDER Depot" of THE SHAREHOLDER.

Book tip: The crypto decade

Bitcoin was invented in 2008. A decade later, cryptocurrencies have made millionaires and are said to have the potential to change the world. We regularly encounter keywords such as Bitcoin, IOTA or blockchain in the media. In his book, Bitcoin star investor Robert Küfner looks back on the first ten years of digital currencies. Peppered with anecdotes from the world of cryptos, it lets the reader participate in an incredible development and shows what upheavals can be expected in the realm of Bitcoin and Co in the near future.

Authors: Küfner, Robert A.
Number of pages: 208
Release date: 20.09.2018
Format: Soft cover
ISBN: 978-3-86470-600-4