Grayscale XRP Fund Sees Fresh Inflows Wiped Out by Market Hit

Grayscale's XRP Trust ETF saw a positive turn in the second quarter as investors added fresh capital to the fund. Filings show the fund clawed back 480,000 shares, bringing in about $12.7 million in net capital. This modest comeback followed a rough first quarter where the fund suffered heavy contractions in shares and overall value.

Despite the new money coming in, market conditions dealt a harsh blow to the portfolio. The fund posted a $16.8 million operating loss for the quarter, largely driven by unrealized investment losses on its holdings. Because of this sharp drop, the fund's total net assets actually fell from $61.5 million at the end of March down to $57.4 million at the close of June.

Even with the asset decline, the fund's actual token balance grew by over 20 percent during the quarter, ending June with more than 55 million tokens. Traders are now watching to see if institutional interest can hold steady and push past these market headwinds as the year continues.