Grayscale's XRP Trust Takes $165 Million Hit Despite Q2 Recovery

Grayscale's XRP trust has suffered a devastating six-month period, losing $165 million through a toxic mix of mass exits and market crashes. Despite a slight recovery in Q2, the fund still held 55% less XRP than its year-end balance.

The trust issued 1.87 million shares and redeemed 5.33 million during the six months, resulting in a net contraction of 3.46 million shares. In Q2 alone, the fund added $12.743 million in capital through issuances, but this was outweighed by operating losses of $16.846 million.

The losses came from investments, with a realized and unrealized investment loss of $16.789 million. The XRP balance grew 20.2% in Q2, but still remained 55% below its December level. The fund's net assets fell to $57.413 million by the end of June.

The trust reported a small recovery in Q2, with 480,000 shares created and only 30,000 redeemed. However, this was not enough to offset the losses from earlier periods, leaving 87.8% of the contraction unrecovered at the end of June.