Key Takeaways
- • Grayscale's CoinDesk Crypto 5 ETF (GDLC) reduced XRP holdings by 27.1% year-over-year to 12.30 million tokens (from 16.87 million), as documented in its FY2026 Form 10-K filed with the SEC on September 3, 2026.
- • Fair value of the XRP position collapsed 67.2% to $12.83 million from $39.14 million, driven by both token redemptions and significant unrealized depreciation of approximately $28.01 million during fiscal 2026.
- • Net redemptions of 7.44 million XRP (against 3.00 million in contributions) were the primary driver of position reduction; management fees added another 153,534 XRP outflow, while portfolio rebalancing contributed a modest 11,912 XRP gain.
- • XRP remains the fourth-largest holding in GDLC at 4.15% of net assets, trailing Bitcoin (76.03%), Ether (12.32%), and BNB (4.76%), indicating sustained but diminished institutional allocation to the asset.
- • The fund realized approximately $12.19 million in gains from XRP share redemption transactions, partially offsetting the substantial unrealized losses recorded during the fiscal year.
Summary
Grayscale's flagship CoinDesk Crypto 5 ETF (GDLC) disclosed a significant contraction in its XRP position in its fiscal 2026 annual report filed with the SEC on September 3, 2026. The fund held 12.30 million XRP tokens valued at $12.83 million as of June 30, 2026, representing a 27.1% reduction in token count from 16.87 million tokens held one year prior. The deterioration in market valuation was more pronounced, with fair value declining 67.2% from approximately $39.14 million to $12.83 million over the twelve-month period.
The position reduction was driven primarily by investor redemptions rather than an active liquidation strategy. During fiscal 2026, the fund received 3.00 million XRP in new contributions while processing 7.44 million XRP in share redemptions—a net outflow of 4.44 million tokens. Management fees consumed an additional 153,534 XRP, while portfolio rebalancing activities contributed a net gain of 11,912 XRP. Critically, the fund recorded approximately $28.01 million in unrealized depreciation on its XRP holdings during the year, reflecting substantial mark-to-market losses. Offsetting these losses partially were realized gains of roughly $12.19 million generated from XRP transactions tied to share redemptions.
Despite the contraction, XRP maintained its position as the fourth-largest holding within GDLC, representing 4.15% of the fund's net assets as of fiscal year-end. The portfolio remained heavily concentrated in Bitcoin at 76.03% of assets, with Ether comprising 12.32% and BNB at 4.76%. The shift in XRP's portfolio weighting reflects both the absolute decline in token holdings and the relative outperformance of larger cryptocurrencies during the fiscal year, underscoring changing institutional allocation dynamics within Grayscale's diversified crypto ETF structure.
The position reduction was driven primarily by investor redemptions rather than an active liquidation strategy. During fiscal 2026, the fund received 3.00 million XRP in new contributions while processing 7.44 million XRP in share redemptions—a net outflow of 4.44 million tokens. Management fees consumed an additional 153,534 XRP, while portfolio rebalancing activities contributed a net gain of 11,912 XRP. Critically, the fund recorded approximately $28.01 million in unrealized depreciation on its XRP holdings during the year, reflecting substantial mark-to-market losses. Offsetting these losses partially were realized gains of roughly $12.19 million generated from XRP transactions tied to share redemptions.
Despite the contraction, XRP maintained its position as the fourth-largest holding within GDLC, representing 4.15% of the fund's net assets as of fiscal year-end. The portfolio remained heavily concentrated in Bitcoin at 76.03% of assets, with Ether comprising 12.32% and BNB at 4.76%. The shift in XRP's portfolio weighting reflects both the absolute decline in token holdings and the relative outperformance of larger cryptocurrencies during the fiscal year, underscoring changing institutional allocation dynamics within Grayscale's diversified crypto ETF structure.
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