Grayscale has allocated more than a quarter of its new Digital Assets Next Gen model portfolio to XRP, positioning the token as the second-largest holding behind Ethereum while deliberately excluding Bitcoin. The portfolio, designed for financial advisors, provides a predetermined mix of digital assets that can be replicated in client accounts using the firm’s exchange-traded funds.

As of August 31, the Next Gen model held seven funds. Ethereum commanded the largest share at 42.34 percent, followed by XRP at 26.11 percent and Solana at 21.09 percent. Together these three assets accounted for nearly 89 percent of the portfolio. Hyperliquid received 5.76 percent, with the remainder split among Chainlink, Avalanche and Sui.

Portfolio Structure and Rules

Model portfolios supply advisors with fixed asset selections and weightings that can be applied across multiple client accounts. Grayscale manages the composition and rebalances the allocations every three months. The firm generally limits any single asset to 40 percent of the portfolio, though Ethereum has already surpassed that threshold because of market gains since the model launched on July 27.

The strategy focuses exclusively on alternative cryptocurrencies and omits Bitcoin, distinguishing it from more traditional crypto baskets that typically assign the largest weight to the leading digital asset. Grayscale charges no additional management fee for the model portfolios themselves. The underlying funds carry an average fee of approximately 0.23 percent.

Performance of Underlying Funds

Despite the portfolio’s overall results, several of the individual funds have underperformed. The Grayscale XRP Trust ETF was trading 38.51 percent below its launch price. During the first half of 2026 the trust sold roughly $180 million worth of XRP at a realized loss. Six of the seven funds included in the Next Gen model were trading below their respective launch prices.

The model portfolio itself recorded a 30.69 percent net return since its July launch. That performance history remains short, with much of the gain occurring during a strong period for crypto markets in August. XRP was recently trading near $1.42.

Institutional Context for XRP

Grayscale already offers direct XRP exposure through its XRP Trust ETF, which began trading on NYSE Arca in November 2025 and carries a 0.35 percent sponsor fee. Investors obtain price exposure without managing wallets or custody, although shares of the ETF do not represent direct ownership of the token.

U.S. spot XRP ETFs have continued to attract capital even as other crypto funds experienced withdrawals. Recent weekly inflows into XRP products reached about $19 million, while Bitcoin ETFs recorded substantial outflows. Collective holdings of U.S. XRP ETFs are estimated at approximately 1.1 billion tokens.

The 26.11 percent weighting does not require advisors to place that exact share of client assets into XRP, nor does it guarantee automatic inflows into the Grayscale XRP product. It does, however, establish another formal channel through which traditional investors can obtain exposure to the asset within a diversified, Bitcoin-free framework managed by one of the largest digital-asset firms.