Grayscale's XRP Trust has sold more than $180 million worth of XRP, booking over $34 million in realized losses as the token's price slid. The sale, disclosed in recent filings, reflects the trust's declining net asset value (NAV) amid a broader downturn in the cryptocurrency market.
Why the sale was triggered
The trust's NAV dropped as XRP's price fell, forcing the fund to sell tokens to meet its operational structure. Grayscale's products are designed to track the price of their underlying assets, but when the NAV deviates significantly, the trust may need to adjust its holdings. In this case, the price decline led to a situation where the trust sold XRP at a loss to rebalance or cover expenses.
The scale of the losses
Over $180 million in XRP was sold, resulting in realized losses exceeding $34 million. That means the trust sold its XRP holdings at prices lower than what it originally paid, locking in the loss. The exact purchase price of the sold tokens wasn't disclosed, but the loss figure indicates a substantial drop from the cost basis.
The XRP price downturn shows no immediate signs of reversal, leaving the trust's remaining holdings exposed to further depreciation. Investors in the trust are watching closely, but no further sales have been announced. The trust's next moves will depend on market conditions and the fund's management strategy.
