Q2 GXRP share rebound left 87.8% of Q1 loss unrecovered

Grayscale XRP Trust ETF (GXRP) clawed back 480,000 shares in Q2, covering 12.2% of its derived 3.94 million-share first-quarter contraction. The fund’s Aug. 4 Form 10-Q shows 510,000 shares issued and 30,000 redeemed during the quarter.

The six-month ledger shows the true size of the gap. GXRP issued 1.87 million shares and redeemed 5.33 million, a net contraction of 3.46 million. Subtracting Q2 from those totals leaves 1.36 million shares issued and 5.30 million redeemed in Q1, producing the derived 3.94 million-share contraction.

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Q2 flipped the quarterly flow positive. Its 480,000 net creations replaced about one share for every eight lost in Q1, leaving 87.8% of that contraction unrecovered at June 30.

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Q2 operating losses outweighed new share capital

Q2 share activity added $12.743 million of net capital, with $13.442 million from issuances offset by $699,000 paid for redemptions. The $16.846 million loss from operations was larger, pulling net assets to $57.413 million from $61.516 million at the end of March.

Most of the operating hit came from investments. The $16.789 million realized and unrealized investment loss included a $16.327 million drop in unrealized appreciation, $433,000 in realized losses on XRP sold for redemptions, and $29,000 in realized losses on XRP sold for expenses. A separate $57,000 net investment loss brought the decline from operations to $16.846 million.

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The quarter therefore split in two: net creations added capital while investment performance cut more deeply into assets.

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