Grayscale Investments, the world’s largest digital asset manager, has reportedly dumped a significant portion of its XRP and XLM holdings.
Data from Bybt, a cryptocurrency futures trading platform, reveal that Grayscale’s XRP holdings declined by more than 9.18 million on Dec. 29, bringing its total position to 26.45 million XRP, worth $5.77 million at press time.
On the same day, Grayscale reportedly liquidated over 9.74 million Stellar Lumens, or XLM, bringing its total holdings to 9.19 million XLM, or $1.27 million at today’s prices.
Grayscale’s apparent firesale of XRP came a week after the U.S. Securities and Exchange Commission, or SEC, filed a lawsuit against Ripple Labs. The news triggered a wave of delistings from major exchanges, including Coinbase and Bittrex, as XRP’s price plunged 60%.
With all the regulatory scrutiny surrounding Ripple, it’s not difficult to see why Grayscale may be distancing itself from the cryptocurrency. It isn’t entirely clear, however, why the fund manager reduced its exposure to XLM at the same time.
Stellar was co-founded by Jed McCaleb, a software developer who was part of Ripple’s founding team before departing the project in 2014. As of Dec. 9, McCaleb’s public XRP wallet held over 251 million XRP. He has reportedly sold hundreds of millions of dollars worth of XRP since early 2016.
Grayscale and Stellar did not immediately respond to requests for comment.