Crypto asset manager Bitwise has liquidated the XRP position of its crypto index fund.
Bitwise said the move took place in light of the U.S. Securities & Exchange Commission (SEC) has alleged that XRP is a security.
On Tuesday, the SEC officially sued Ripple and two of its executives — CEO Brad Garlinghouse and co-founder Chris Larsen — alleging that the firm brought in more than $1.3 billion via an ongoing, unregistered securities sales in the form of XRP.
Bitwise said its crypto index fund "does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws."
XRP had a share of 3.8% in Bitwise's crypto index fund before liquidation.
In light of the lawsuit allegations, several crypto exchanges, including OSL, CrossTower and Beaxy, have halted XRP trading.