Ripple, the company responsible for XRP, has recently published its transparency report for the third quarter of 2024. The report aims to provide investors with information on the current state of the cryptocurrency market, as well as updates on XRP and the XRP Ledger.
Key points from the report include:
1. XRP Legal Status: Ripple has confirmed that XRP is not considered a security. The company has also filed a Form C document in response to an objection from the U.S. Securities and Exchange Commission (SEC). It is important to note that the SEC’s appeal does not pertain to the security status of XRP.
2. Impact of SEC Proceedings: The report emphasizes that the ongoing pressure from the SEC, including the lawsuit against Ripple, continues to significantly impact the market price of XRP.
3. Rising Institutional Interest: The report highlights a notable increase in institutional interest in XRP-based investment products. Several firms, such as Bitwise, Canary, and 21Shares, have filed S-1 forms to establish XRP exchange-traded funds (ETFs).
4. Grayscale’s Initiatives: Grayscale, a leading investment firm, has launched an XRP Trust and has applied to convert an existing multi-asset fund that includes XRP into an ETF.
In terms of Ripple’s XRP holdings, the company provides detailed data on its holdings in order to maintain transparency. The holdings are divided into two categories: XRP held in Ripple’s wallets and XRP held in escrow on the ledger. The escrowed XRP is locked and will be released monthly over the course of 42 months. Any unused XRP at the end of each month is returned to escrow.
As of June 30, 2024, the total XRP held by Ripple was 4,682,112,997, and the total XRP under custody on the ledger was 39,500,000,005. As of September 30, 2024, the total XRP held by Ripple decreased to 4,436,713,796, and the total XRP under custody on the ledger decreased to 38,900,000,005.
Ripple also mentions that it occasionally transfers XRP to third parties, such as exchange-traded products (ETPs) or trusts, which may result in a decrease in the amount of XRP returned to escrow for that month.
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