Grayscale sold all XRP in its fund and bought more BTC and ETH.

Grayscale Replaces XRP with Bitcoin and Ether

Grayscale sold all XRP in its fund and bought more BTC and ETH.

Crypto asset manager Grayscale Investments has removed XRP from its Digital Large Cap Fund, replaced by more Bitcoin (BTC) and Ether (ETH), among others.

Announcing the news on Tuesday, Grayscale said it sold all XRP from the fund on Monday. With the proceeds, Grayscale bought more of Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). 

XRP was approximately 1.46% of Grayscale’s Digital Large Cap Fund. After dropping XRP, the revised components of the fund are BTC (81.63%), ETH (15.86%), LTC (1.43%), and BCH (1.08%).

Grayscale still operates a standalone XRP Trust, but it stopped accepting new subscriptions to the fund on December 23. It is not clear whether its XRP Trust would face similar action. 

Grayscale Ethereum Trust

Additionally, investors in Grayscale Ethereum Trust (ETHE) are looking to close out a trade to profit off the premium value of ETHE shares. And they will need to buy more Ether to do it. 

According to TheTIE CEO Joshua Frank, a large number of ETHE investors via private placements, mainly institutions, received their shares lately, as the mandatory lockup period expired. 

Many of the ETHE shares were purchased at a discount to market prices by sending borrowed ETH to Grayscale. Therefore, as institutional investors exit the lockup period and sell their shares, they now must pay back by buying ETH. 

This scramble to cover ETH loans used to do the trade could mean higher ETH prices this week, according to Frank. 

After shooting up by 40% in the last seven days, ETH breathes at $1,000 level. At the time of writing, ETH is trading at $1,085.