Essential asset management, a supplier of crypto-asset indexes and beta funds, was announced on On Wednesday, the Bitwise 10 Crypto Index Fund (OTCQX: BITW) liquidated its position in the XRP. Bitwise discovered that Fr.n Tuesday, December 22nd, The U.S. Securities and Exchange Commission (SEC) has initiated proceedings United States Southern District Court New York arguing, inter alia, that XRP is a security subject to the registration requirements of federal securities laws.
“Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be considered securities under federal or state securities laws. Bitwise’s decision to liquidate its position in the XRP was based on a review of new public information from the SEC’s appeal. “
Bitwise further revealed that prior to the sale of the assets, XRP was approximately 3.8% of the Fund. The fund liquidated its position and reinvested the proceeds in other portfolio assets.
“Bitwise issues this release in accordance with OTCQX’s disclosure obligations. The Fund’s annual report, published to meet the guidelines for publishing alternative reporting standards for OTCQX and OTCQB, reveals significant risks associated with investing in stocks.
Bitwise added that investors are encouraged to read the annual report and carefully consider these and other risks, including the fact that if any assets held by the Fund are found to be “insurance” under federal or state securities laws, the SEC or any other agency, or in court proceedings or otherwise, this may have material detrimental consequences for the Fund and BITW shares.