Grayscale slashes XRP holdings by 27% in Crypto 5 ETF, fair value drops 67%

XRP allocation and fund flows

Between June 2025 and June 2026, the ETF’s XRP position fell by approximately 4.57 million XRP, equal to a 27.1% decline. Over the same period, the fund reported a much larger decrease in the fair value of its XRP holdings—from about $39.14 million down to $12.83 million, reflecting a drop of roughly 67%.

XRP-focused researcher BankXRP identified these figures shortly after the SEC published Grayscale’s fiscal 2026 Form 10-K on September 3. The document clarified that the change in XRP holdings was not simply the result of direct sales or bearish bets on the asset.

During the fiscal year, the CoinDesk Crypto 5 ETF received approximately 3.00 million XRP in new contributions. At the same time, about 7.44 million XRP were redeemed by investors. An additional 153,534 XRP were distributed to cover management fees, and portfolio rebalancing resulted in a net addition of 11,912 XRP to the fund’s holdings.

Unrealized depreciation on XRP reached about $28.01 million, reflecting negative price movement over the year. However, XRP transactions related to share redemptions generated a realized gain near $12.19 million for the same period.

Position within the fund portfolio

By the end of June 2026, XRP remained the fourth-largest holding in the CoinDesk Crypto 5 ETF, making up 4.15% of the portfolio’s net assets. Bitcoin took the largest share at 76.03%, followed by Ether at 12.32% and BNB at 4.76%. Solana trailed XRP, representing 2.74%.

The Crypto 5 ETF’s total net assets dropped to approximately $308.96 million at the end of fiscal 2026, compared with $777.22 million a year earlier.

Grayscale clarified that the CoinDesk Crypto 5 ETF, widely known by its ticker GDLC, functions as a diversified crypto index fund. This product is separate from GXRP, Grayscale’s dedicated spot XRP ETF.

In a previous statement, Grayscale cited research indicating that ETF adoption could eventually account for 5% to 6% of all circulating XRP if trends align with those seen in earlier cryptocurrency funds.

So while the annual report underscores a reduced XRP allocation, the data suggests that redemptions, portfolio rebalancing, and XRP price depreciation played a greater role in the diminished holdings than a shift in Grayscale’s overall XRP outlook.

A substantial reduction in XRP exposure within the Crypto 5 ETF mainly resulted from investor redemptions, portfolio adjustments, and broader declines in XRP’s market value, rather than a deliberate move away from the asset.

Mini dictionary: Grayscale is a digital asset management firm known for crypto investment trusts and ETFs, including diversified and asset-specific products tracked by institutional and retail investors.