Grayscale XRP Fund's Brief Resurgence Wiped Out by $16.8M Market Hit

The Grayscale XRP fund (GXRP) saw a resurgence in Q2, with investors pouring millions back into the fund. However, this comeback was short-lived as a $16.8 million market hit instantly wiped out the gains.

According to the fund's Form 10-Q, GXRP issued 510,000 shares and redeemed 30,000 during the quarter, resulting in a net creation of 480,000 shares. This is equivalent to about one share for every eight lost in Q1, leaving 87.8% of that contraction unrecovered at June 30.

The fund's operating losses outweighed new share capital in Q2, with a $16.846 million loss from operations pulling net assets down to $57.413 million from $61.516 million at the end of March. The majority of this hit came from investments, including a $16.789 million realized and unrealized investment loss.