Grayscale’s Annual Report Highlights
In its latest annual report to the U.S. Securities and Exchange Commission (SEC), Grayscale disclosed that its CoinDesk Crypto 5 ETF had a significant decrease in its XRP holdings by the end of fiscal 2026, dropping to 12.3 million XRP from 16.87 million the previous year. This reflects a decline of approximately 27.1%, equating to 4.57 million XRP, within the year ending June 30, 2026. The valuation of XRP within the fund dwindled even more, falling from nearly $39.14 million to about $12.83 million, which is a staggering decrease of roughly 67%.
Analysis of XRP Transactions
BankXRP, an entity focused on XRP research, noted the changes shortly after Grayscale’s annual Form 10-K was made public. This report reveals more than just a simple sale of XRP; its detailed analysis dissects various transactions affecting the fund’s XRP position. In fiscal 2026, Grayscale received contributions worth around 3 million XRP, while roughly 7.44 million XRP were withdrawn by investors. Additionally, a further 153,534 XRP was utilized for management fees and a positive net of 11,912 XRP resulted from portfolio rebalancing operations. The fund suffered an unrealized depreciation of approximately $28.01 million on its XRP holdings during this time.
Current Composition of the ETF
Amid these fluctuations, Grayscale’s XRP stake remains pivotal in the composition of the ETF, representing 4.15% of its total net assets, making it the fourth-largest asset in the portfolio. Bitcoin continues to dominate with a 76.03% share, followed by Ether and BNB at 12.32% and 4.76%, respectively. Solana lags behind XRP with only a 2.74% share. Overall, the net assets of the fund decreased to about $308.96 million, a notable drop from the previous year’s $777.22 million.
Future Outlook for XRP ETFs
It’s critical to differentiate the GDLC ETF from Grayscale’s dedicated spot XRP ETF, GXRP, especially amidst increasing institutional interest in XRP exposure through various financial products. Recent reports have indicated that prominent financial institutions are among those holding XRP ETFs, despite the cryptocurrency experiencing price volatility. Grayscale posits that if adoption patterns mirror those of earlier crypto ETFs, XRP ETFs might eventually encompass 5% to 6% of the circulating XRP supply. Therefore, while the latest filings indicate a reduced XRP allocation in the GDLC, these changes can be attributed to fund management and fluctuations in XRP values rather than a shift in Grayscale’s broader strategy regarding XRP.
