The post Why Grayscale-Linked Firms Are Quietly Selling XRP and Solana appeared first on Coinpedia Fintech News
Grayscale-linked entities are quietly reducing their exposure to XRP and Solana as selling pressure builds across the crypto market. Recent US SEC filings show that insiders connected to Grayscale and its parent company, Digital Currency Group (DCG), have offloaded portions of their holdings in XRP and Solana-linked investment products amid a broader market pullback.
The disclosures come as the crypto market grapples with a sharp correction, wiping out nearly $5 billion in value and triggering sustained outflows from several spot and staking-based ETFs.
Insider Sales Signal Defensive Positioning
According to Form 144 filings, Digital Currency Group sold 15,000 shares of the Grayscale Solana Staking Trust (GSOL) on February 2, with the transaction valued at roughly $115,000. The sale was executed through Canaccord Genuity and involved shares initially acquired via a private cash transaction earlier this year.
This was not an isolated move. Over the past week, DCG is reported to have sold a total of 26,000 GSOL shares, signaling a cautious stance as Solana faced mounting downside pressure.
Solana’s price reflected this shift in sentiment, falling nearly 16% over the past week and slipping below the $100 mark, a psychologically important level for traders and long-term holders alike.
Solana ETF Outflows Add to the Pressure
The GSOL product has now recorded outflows for four consecutive trading sessions, with net redemptions totaling approximately $5.5 million. While spot Solana ETFs collectively saw modest inflows on Monday, GSOL itself failed to attract fresh capital, highlighting investor hesitation toward staking-linked exposure during heightened volatility.
The contrast between spot inflows and GSOL stagnation suggests institutions are becoming more selective about risk as price momentum weakens.
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XRP Sees Even Sharper Institutional Pullback
A similar pattern has emerged in XRP-linked products. DCG International Investments Ltd disclosed the sale of 3,620 shares of the Grayscale XRP Trust (GXRP), worth around $115,000, also executed on February 2. The shares were originally acquired in September 2024 through a privately negotiated deal.
The move follows an even larger reduction last week, when the firm sold 15,000 GXRP shares as XRP dropped below the $1.60 level.
ETF flow data paints a bleak picture. Spot XRP ETFs recorded their largest daily outflow at nearly $93 million, with Grayscale’s XRP product accounting for the majority of redemptions. Additional withdrawals were seen from rival offerings, reinforcing the bearish institutional tone.
What This Means for the Market
While insider selling does not necessarily indicate long-term bearish conviction, the timing is notable. With ETF outflows accelerating and prices under pressure, Grayscale-linked firms appear to be de-risking amid uncertain near-term conditions. For XRP and Solana, institutional confidence may need a clear shift in market structure before meaningful recovery can begin.
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FAQs
They’re reducing exposure amid market volatility and ETF outflows to manage risk and protect institutional investments.
Yes. Large moves by prominent firms like Digital Currency Group often signal caution, prompting other institutions to reassess exposure. This can amplify short-term selling pressure even without broader market news.
Retail investors may face increased volatility as institutional rebalancing affects price swings. While it doesn’t dictate long-term trends, monitoring market structure and ETF flows can help gauge near-term risk.
Markets may stabilize if buying demand returns or macro conditions improve, but prolonged institutional caution could keep volatility high. Analysts will likely watch ETF flows, price levels, and sentiment indicators closely.
