Grayscale Sells XRP and Solana Holdings as Market Crash Widens

A wave of selling linked to Grayscale and its parent company has caught attention as the crypto market becomes unstable again. Regulatory filing shows that Digital Currency Group (DCG) and affiliated firms recently adjusted how much XRP and Solana they hold in investment products.

This comes after a sharp drop across the crypto market. This event pushed both tokens lower and led to money leaving exchange traded funds (ETFs) tied to them.

Grayscale and DCG Adjust Holdings

Recent U.S. Securities and Exchange Commission (SEC) filings show that DCG and its affiliates sold parts of their crypto holdings. The sales involved the Grayscale XRP Trust and the Grayscale Solana Staking Trust.

These transactions were disclosed through Form 144 notices, which are required when insiders plan to sell restricted or controlled securities.

The sales happened soon after a major market crash that wiped out $5 billion and pushed crypto prices lower. XRP and Solana both saw strong weekly losses as big investors pulled back from spot ETFs linked to them.

Solana Holdings Reduced Amid ETF Outflows

DCG sold 15,000 shares of the Grayscale Solana Staking ETF for a total value of $115,440. The sale happened on February 2 and was carried out through Canaccord Genuity Incorporated. 

Over the past week, DCG also sold a total of 26,000 shares of the same Solana staking product. During this period, Solana’s price fell 16% and dropped below $100. 

Investor confidence fell as the Grayscale Solana Staking ETF saw money leave for four days in a row, totaling $5.5 million. While other Solana ETFs saw small inflows on February 2, the Grayscale fund had none, showing that investors remain cautious.

DCG Cuts XRP Exposure as ETF Outflows Grow

DCG International Investments Limited also cut back its exposure to XRP-related products. The company sold 3,620 shares of the Grayscale XRP Trust, worth $115,070. The shares were originally acquired in September 2024 through a privately negotiated cash agreement with the issuer. 

In addition, DCG International Investments Limited sold 15,000 XRP Trust shares last week as XRP’s price fell below $1.60. At the same time, spot XRP ETFs recorded the largest outflows among altcoin ETFs. 

Total withdrawals reached $92.92 million, with the Grayscale XRP ETF accounting for most of the redemptions. On Monday, spot XRP ETFs continued to see net outflows, while other issuers also reported investor withdrawals.

These transactions follow earlier reports that Grayscale executives also cut back their investments in XRP, Solana, and Chainlink. This includes Chairman Barry Silbert and CLO Craig Salm. 

Together, the moves show that insiders are adjusting their portfolios during a tough market period. While interest in altcoin ETFs is mixed, the recent sales suggest that major institutional players are being careful.