10-Q: Grayscale XRP Trust ETF Q1 2026 Financial Results

Grayscale XRP Trust ETF reports a net decrease in assets to $61.5 million for Q1 2026, driven by XRP price depreciation and net share redemptions.

Summary

• Net assets decreased by 72% during the quarter, falling from $223.4 million at year-end 2025 to $61.5 million as of March 31, 2026.
• The Trust recorded a net decrease in assets from operations of $34.9 million for the three months ended March 31, 2026.
• The decline in net assets was primarily attributed to a drop in the price of XRP from $1.83 to $1.34 per token.
• Net share redemptions totaled 5,300,000 shares, while 1,360,000 shares were issued during the period.
• The Trust maintains a passive investment strategy with no leverage or derivatives.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative report due to the sharp decline in net assets and significant share redemptions, reflecting both market-driven price depreciation and investor outflows.

Positives

• The Trust successfully maintained its operational structure and compliance with SEC reporting requirements.
• The Sponsor implemented a fee reduction to 0.35% effective November 24, 2025, enhancing cost-efficiency for shareholders.
• The Trust continues to provide a regulated, convenient vehicle for XRP exposure via NYSE Arca.

Negatives

• Net assets experienced a significant 72% decline over the three-month period.
• The Trust recorded a net realized loss of $33.7 million on the sale of XRP to meet share redemptions.
• The price of the underlying asset, XRP, depreciated by approximately 26.8% during the quarter.

Risks

• The Trust's value is highly concentrated in XRP, making it extremely sensitive to the asset's historical price volatility.
• Market liquidity constraints and operational or cybersecurity risks associated with digital asset custody could impact performance.
• Regulatory uncertainty regarding digital assets, including potential changes in tax treatment or listing rules, poses a risk to the Trust's operations.
• The Trust is subject to the risk that the price of XRP may fluctuate significantly, leading to substantial losses for shareholders.

Future Outlook

The Trust remains a passive investment vehicle and does not provide specific financial guidance. Future performance is expected to track the price of XRP, subject to the Trust's expenses and market conditions.

Management Comments

• Management notes that the Trust is a passive entity and does not utilize leverage or derivatives.
• The Sponsor confirms that disclosure controls and procedures were effective as of the end of the period.

Industry Context

StockSavvy.ai notes that the Grayscale XRP Trust ETF operates within the increasingly competitive landscape of single-asset crypto ETPs. The significant redemptions observed in Q1 2026 reflect broader market sentiment shifts and the ongoing volatility inherent in the XRP ecosystem compared to more established assets like Bitcoin or Ethereum.

Comparison to Industry Standards

• The Trust's 0.35% management fee is competitive with other institutional-grade digital asset investment products.
• The use of Coinbase as a custodian aligns with industry standards for institutional digital asset security.
• The Trust's reliance on the CoinDesk XRP Benchmark Rate for NAV calculation is consistent with best practices for crypto-asset valuation.

Management Changes

Corporate Governance

Legal Proceedings

• No material changes to legal proceedings reported.

Related Party Transactions

• The Trust pays a Sponsor's Fee to Grayscale Investments Sponsors, LLC.
• Related parties held 7,026 shares of the Trust as of March 31, 2026.

Stakeholder Impact

• Shareholders experienced a decrease in the value of their holdings due to XRP price depreciation.
• Authorized Participants continue to facilitate the creation and redemption of shares.

Next Steps

• Continued administration of the Trust by the Sponsor.
• Ongoing monitoring of XRP market conditions and liquidity.
• Potential future adjustments to listing rules if the Sponsor seeks to change policies regarding Incidental Rights.

Key Dates

Recommendation

The Trust is a passive vehicle tracking XRP; the recommendation is to hold for investors seeking direct exposure to the asset, while acknowledging the high volatility and recent negative performance trends.

Keywords

Grayscale, XRP, ETF, Cryptocurrency, Digital Assets, GXRP, Investment Trust