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Swiss ETP Issuer Removes XRP in Fears of a Liquidity Crisis

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Ripple legal troubles seem to be rising each day. As per the Block report on Dec 28, 21Shares, a Swiss ETP issuer asset manager, is delisting XRP from its exchange-traded products (ETP) in line with the firm’s index rules and on recent event’s of Ripple.

According to Hany Rashwan – the CEO of 21Shares, assets that could be faced with liquidity issues or be deemed security can’t be part of their exchange-traded products.

With the XRP on SEC’s cross-hairs, Rashwan explained, the exiting of Jump Trading and Galaxy Digital—two of the largest over-the-counter (OTC) trading desks, from the XRP market could portend problem for the digital asset’s security.

HODL and KEYS Affected

Affected by this change are two of their main products: Crypto Basket Index ETP (HODL) and Bitwise Select 10 ETP (KEYS).

21Shares is credited for listing the first crypto basket, HODL, in November 2018 on the SIX Swiss stock exchange. Over the last two years, it has issued 11 crypto ETPs in seven new stock exchanges in Switzerland and the European Union (EU).

READ more:  Tradingview Column: Cryptocurrencies hurry to break new maximums

Although the page describing specific aspects of the two products is now inaccessible, the Block earlier explained that the asset manager is also monitoring AXRP.

It is a single-asset product that is tied to XRP.

XRP being Dropped

Ripple legal troubles seem to be rising each day. As per the Block report on Dec 28, 21Shares, a Swiss ETP issuer asset manager, is delisting XRP from its exchange-traded products (ETP) in line with the firm’s index rules and on recent event’s of Ripple.

They now join a long list of exchanges, including BitStamp, and Bitwise, distancing themselves from the XRP.

The United States Securities and Exchange Commission (SEC) intends to sue Ripple and its two executives, Brad Garlinghouse and Chris Larsen, accusing the firm of allegedly selling unregistered securities and raising $1.3 billion.

News of the impending suit sent shock waves as the XRP price crumbled, shaving more than half of its November 2020 gains. As of writing on Dec 29, the XRP price was trading at $0.29, down from $0.78 peaks.

Scrambling for the exits, observers speculate that some of these funds are flowing into leading digital currencies and stable coins.

Already, the BTC price has soared above $28k, printing a new all-time high. On the other hand, the ETH price, fanned by solid fundamentals, is for the first time in two years trading above $700.

READ more:  UNICEF to invest Ethereum in blockchain startups with Ethereum

As BTCManager earlier reported, MoneyGram has already distanced itself from Ripple saying it doesn’t deploy On-Demand Liquidity (ODL).

Source: BTCManager

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The information expressed in this article is solely those of the author and do not necessarily reflect the vies of CryptoDeFinance.  Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment.
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Bruno Marques

Hi! I am the CEO/Founder of Crypto DeFinance, and I am an Enthusiast crypto investor. I started this project so we can provide you with carefully curated news. If you like us and our news, share the posts and comment. Your visit and interaction is very important to us.
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