Grayscale’s Game of Crypto: XRP and XLM Holdings Under Scrutiny

Grayscale Clarifies Holdings Status

In a twist that could give soap operas a run for their money, Grayscale Investments has cleared the air regarding its XRP and XLM positions. On December 31, 2020, Grayscale informed Cointelegraph that despite reports of a sell-off, it has not liquidated any holdings in XRP or XLM. So, if you’re worried about that dramatic dip, you can breathe a little easier.

Data Behind the Drama

However, let’s rewind to the source of the uproar. According to data from Bybt, a cryptocurrency futures trading platform, Grayscale appeared to liquidate a hefty chunk of both cryptocurrencies on December 29. Their holdings of XRP tumbled by over 9.18 million, bringing their total down to a mere 26.45 million XRP, valued at approximately $5.77 million—if you can call it mere when it’s still millions! Meanwhile, their Stellar Lumens (XLM) holdings dropped by over 9.74 million, leaving them with 9.19 million XLM, or around $1.27 million. Just a case of needing to spring clean their crypto portfolio, perhaps?

Grayscale’s Asset Management Portfolio

Currently, Grayscale boasts assets under management worth a whopping $19.26 billion—almost enough to have a sweet seaside villa, minus the fun. And Bitcoin (BTC) dominates the scene, accounting for an eye-popping 87% of the total. Something about a certain digital gold, right?

The Ripple Effect of Regulatory Issues

Now, why all this pandemonium with XRP? Well, just days before Grayscale’s purported sell-off, the SEC heated things up by filing a lawsuit against Ripple Labs. The fallout was swift—as if someone yelled ‘fire’ in a crowded cinema. Major exchanges like Coinbase and Bittrex rushed to delist XRP, sending its price plummeting by around 60%. Talk about a rough patch!

What’s Next for XRP and XLM?

Despite the waves crashing around Ripple, the company is resolute in its defense. Ripple has urged all market participants to hold their horses before making judgments about XRP’s security situation until they’ve heard their side. However, the reason behind Grayscale’s simultaneous reduction of XLM is still shrouded in mystery—perhaps they’re just exercising some strategic reallocation? Who knows!
Stellar’s co-founder, Jed McCaleb, is another intriguing character in this tale. He holds a staggering amount of XRP, reportedly selling off hundreds of millions since 2016. Maybe he’s just prepping for a mega-mansion purchase?

In the meantime, Grayscale and Stellar have been notably quiet, presumably pondering their next moves or perhaps just enjoying a moment of digital zen.