# Grayscale XRP Trust ETF

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Grayscale XRP Trust ETF).

## Overview

Grayscale XRP Trust ETF is a Delaware statutory trust that holds XRP, the digital asset used on the decentralized XRP Network, and issues exchange-traded shares designed to track the value of that XRP less expenses. It is a passive investment vehicle rather than an operating company: it does not develop the network, employ staff, or use leverage or derivatives to pursue its objective.

## Products & services

• Exchange-traded shares backed by XRP holdings
• Creation and redemption baskets for authorized participants
• Passive XRP price exposure through a listed trust structure
• Custodied digital asset holdings and NAV-based valuation

- **Exchange-traded XRP exposure** (100%) — Listed trust shares intended to reflect the value of XRP held by the trust, net of expenses.
- **Creation and redemption activity** (0%) — Basket-based issuance and redemption mechanics used by authorized participants to add or remove XRP.

- Exchange-traded shares backed by XRP holdings
- Creation and redemption baskets for authorized participants
- Passive XRP price exposure through a listed trust structure
- Custodied digital asset holdings and NAV-based valuation

## Customers

The trust is bought by investors seeking regulated, exchange-traded exposure to XRP without directly holding the token. Its primary users are institutional and accredited investors, plus market participants trading the shares on NYSE Arca after listing. Authorized participants are operational counterparties that create and redeem baskets, while the underlying XRP ecosystem includes financial institutions and service providers that use the network for cross-currency transfers.

- **Public market investors** (primary) — Buy listed shares for convenient, exchange-traded exposure to XRP price movements.
- **Authorized participants** (primary) — Create and redeem baskets in exchange for XRP, keeping share price aligned with NAV.
- **Institutional and accredited investors** (primary) — Use the trust as a regulated wrapper for XRP exposure and portfolio allocation.
- **XRP Network users and financial institutions** (secondary) — Use XRP as a bridge asset for cross-currency transfers and liquidity management.

- Investors seeking XRP exposure without direct token custody
- Institutional and accredited investors using listed shares
- Authorized participants creating and redeeming baskets
- Financial institutions using XRP for cross-currency settlement
- Digital asset trading platforms and custodians supporting liquidity

## Geography

The trust is organized in Delaware and listed in the United States, with shares trading on NYSE Arca. Its economic exposure is global because XRP is a decentralized digital asset traded on digital asset platforms worldwide, but the trust’s legal domicile, listing venue, and reporting base are U.S.-centric.

- Delaware statutory trust organized in the United States
- Shares trade on NYSE Arca in U.S. market hours
- XRP pricing references global digital asset trading platforms
- Custody and market liquidity depend on U.S. and offshore venues
- No country revenue disclosure; exposure is asset-price driven, not geographic

## Strategy

The trust’s strategy is to provide a simple, listed vehicle that tracks XRP through passive holdings, basket creation/redemption, and fair-value NAV calculation. Its competitive position depends on maintaining tight linkage between share price and XRP value, adequate liquidity on NYSE Arca, and reliable custody and market-pricing infrastructure.

- **Maintain tight tracking to XRP spot value** (short-term) — Investors buy the trust for direct price exposure, so tracking error would weaken the product proposition.
- **Build trading liquidity and market access** (short-term) — Higher liquidity reduces premiums/discounts and improves the trust’s usefulness to investors.
- **Preserve custody and network integrity** (medium-term) — The trust’s value depends entirely on secure XRP custody and the continued functioning of the XRP Network.

- Track XRP value through passive, fully collateralized holdings
- Use creation/redemption mechanics to support share-NAV alignment
- Maintain listing and trading liquidity on NYSE Arca
- Rely on principal-market pricing for fair-value reporting
- Avoid leverage and derivatives to keep the structure simple

## Risks

The trust is exposed to XRP price volatility, which can directly and materially change share value. It also depends on the security, governance, and continued acceptance of the XRP Network, while secondary-market trading can diverge from NAV when liquidity is thin or market hours are mismatched.

- **XRP price volatility** [high] — The trust’s share value moves with XRP, so sharp token declines flow directly into NAV and market price.
- **Network security or cryptography failure** [high] — A protocol exploit or future cryptographic weakness could enable theft or reduce confidence in XRP.
- **Fork or clone of the XRP Network** [medium] — Sponsor discretion over which fork is treated as XRP could create disputes and valuation uncertainty.
- **Secondary-market premium/discount to NAV** [medium] — Trading hours and liquidity differences between NYSE Arca and digital asset markets can cause mispricing.

- XRP price volatility can sharply reduce share value
- Network flaws or hacks could impair custody or demand
- Forks or protocol disputes may create valuation and governance issues
- Shares can trade at premiums or discounts to NAV
- Liquidity gaps across trading venues can widen spreads

## Accounting

The trust measures XRP at fair value using a principal-market price as of 4:00 p.m. New York time, so reported net assets and gains/losses are highly sensitive to market pricing assumptions. Creations and redemptions are recorded on a trade-date basis, and sponsor fees may be settled in XRP, which affects realized gains/losses and the amount of XRP held.

- **Fair value measurement of XRP** — Principal-market selection and 4:00 p.m. pricing can materially change reported results
- **Creation and redemption accounting** — Affects balance sheet timing and period-end XRP holdings
- **Sponsor fee paid in XRP** — Impacts realized results and reduces trust assets
- **Non-GAAP NAV versus U.S. GAAP Principal Market NAV** — Investors should reconcile product NAV metrics to financial statements

- Fair value measurement of XRP drives reported net assets
- Principal market selection affects valuation and period results
- Creation/redemption timing affects receivables and payables
- Sponsor fee settlement in XRP creates realized gains/losses
- NAV is non-GAAP and can differ from U.S. GAAP principal-market NAV

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*Last updated: 2026-04-28T20:12:18.295379+00:00*