21Shares Announces Suspension of XRP Transactions
21shares, a Swiss-based cryptocurrency manager, has decided to halt XRP transactions after learning that Ripple will be sued. 21Shares announced it was halting XRP trading, removing it from its exchange-traded products (ETP) on the platform.
Cryptocurrency companies such as Bitstamp, CrossTower, Bitwise, Simplex, B2C2, Beaxy, OSL, Jump, Galaxy have decided to stop XRP transactions after the SEC lawsuit. 21shares, a Swiss-based cryptocurrency manager, also joined the caravan.
21shares, which has $ 250 million under its management, is headquartered in Switzerland. Despite this, the company was affected by the lawsuit filed against Ripple in the United States. 21Shares CEO Hany Rashwan explained why this decision in the US affected them.
Another blow to XRP after SEC lawsuit
According to The Block, XRP will no longer be included in the crypto Basket Index, Bitwise Select 10, and AXRP. None of these indices under 21Shares are listed in the US. The lawsuit filed by the SEC also affected 21shares, although it is not U.S.-based.
21Shares CEO Hany Rashwan explained why they took such a decision. 21Shares indices stated that “no tokens identified as securities or experiencing liquidity problems may be included” in accordance with company policy. Recalling that Jump Trading and Galaxy Digital had stopped trading XRP, Rashwan explained that it was too risky to continue trading XRP.
Will News like this come after you?
The number of companies forced to halt XRP transactions is growing. Larry Cermak of The Block team suggested that this number would continue to increase in the following weeks. Cermak believes that Coinbase management can also take a decision in this direction and end XRP services.
Coinbase, a US-based company, is believed to be deadlocked over XRP. The company is known to be evaluating alternative scenarios to avoid this.
Ripple’s partner, SBI Holdings, sent a message of support to the company in a statement on December 28. SBI Holdings stressed that XRP is not recognized as a securities in Japan, but as a cryptocurrency. Ripple could leave the US, the company said.