Grayscale XRP ETF Redemptions Drive $180 Million in Sales

XRP News

A new SEC filing shows that Grayscale's XRP Trust ETF sold $180.78 million worth of XRP (XRP) during the first six months of 2026, as authorized participants redeemed investor shares. The Form 10-Q, covering the period ended June 30, records the disposal of 103.41 million tokens to meet those exits. The scale of the contraction is clear: holdings fell from 122.23 million XRP at the end of 2025 to 55.04 million by mid-year, while net assets declined from $223.36 million to $57.41 million. The trust did receive some creations during the same window, adding 36.27 million XRP through contributions valued at $66.58 million. Those inflows, however, were far smaller than the assets leaving the product. The gap between creations and redemptions was wide enough to cut the trust's token base by more than half within six months. That matters because each share is backed by a shrinking pool of XRP, and any additional fee-related withdrawals further reduce the per-share claim on the remaining assets. The filing emphasizes that the sales were tied to the redemption process rather than a discretionary trading decision by the sponsor. Authorized participants submit redemption requests, and the trust delivers tokens accordingly. The filing describes a structure in which Automated Market Maker (AMM)-style liquidity is not the mechanism; instead, authorized participants create and redeem shares directly with the trust. Sponsor fees also weighed on the vehicle, with periodic withdrawals of XRP to cover expenses reducing the amount of the asset represented by each share. For the broader altcoin market, the disclosure highlights how redemption pressure can translate into spot selling when an issuer must deliver underlying tokens. Grayscale has positioned the trust as a regulated way to gain XRP exposure, but the first-half numbers show that withdrawals, not new demand, dominated the period. The filing does not identify the end buyers of the sold tokens, leaving that flow unresolved.

The same quarterly report puts a number on the cost of that shrinking structure. Grayscale recorded a $34.16 million realized loss on XRP sold to satisfy redemptions during the period, alongside a $39,000 realized loss tied to sales used to offset operating expenses. The trust also carried $17.47 million in unrealized losses on its remaining position as of June 30. Those figures reflect the impact of lower prices on an asset base that was already contracting. The realized loss crystallizes the difference between the trust's historical cost basis and the value delivered when tokens were handed out for redemptions. That loss helps explain why net assets fell more sharply than holdings: the trust held fewer tokens, and the tokens it retained were valued lower than during the prior reporting period. The filing shows outstanding shares falling from 6.30 million at the end of 2025 to 2.84 million by mid-year. During that span, the trust bought back 5.33 million shares while issuing only 1.87 million, underscoring how heavily the balance tilted toward exits. The disclosure also follows an earlier insider transaction: Peter Mintzberg, Grayscale's chief executive, sold a portion of his personal GXRP stake earlier in 2026. The filing does not link that personal sale to the redemption process, and authorized participants typically execute creations and redemptions as mechanical arbitrage rather than directional bets. Even so, the combination of falling share count, realized losses, and a smaller remaining portfolio gives the report a distinctly bear market texture. XRP itself remains far below the levels that defined its previous all-time high narrative, which makes the trust's valuation math more fragile. When token prices decline and redemptions continue, the dollar value of net assets can fall faster than the token count alone suggests. Investors watching the product now have a clear question: whether future inflows can stabilize the vehicle or whether additional redemptions will force more token sales.

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates XRP's $1.0708 resistance at 60/100, driven by Fibo 0.114 and EMA 20, while $1.1172 scores 66/100 from Flip S→R and EMA 50. Spot at $1.0704 sits just under that first barrier, with RSI at 44.34 and a bearish MACD signal confirming our downtrend read. The $1.0461 support scores 53/100 from ATR Lower and Swing Low; a close below it would invalidate the bullish reclaim case and expose $1.0226, rated 52/100 by Fibo 0.000 and Keltner Lower. Funding at 0.0066%, $626.6 million open interest and a 3.16 long/short ratio show crowded long accounts, while the COINOTAG Fear and Greed Index reads 27, signaling Fear. Reclaiming $1.0708 favors $1.0905; losing $1.0461 favors deeper risk-off.