Grayscale Stellar Lumens Trust (XLM) Annual Report - How They Did This Year

Hey there! Let's take a look at how the Grayscale Stellar Lumens Trust (XLM) is shaping up, based on their annual report for the fiscal year ending September 30, 2025. This report gives us a snapshot of what's been going on with the Trust.

A Quick Look at the Trust's Size As of March 31, 2025, the total market value of the Trust's shares held by regular investors (not insiders) was about $36.9 million. By November 20, 2025, there were roughly 1.39 million shares of the Trust available.

Who's Running the Show? Changes in Sponsorship One notable change this year was with the Trust's 'Sponsor' – that's the company that manages the Trust. Before January 1, 2025, Grayscale Investments, LLC (GSI) was in charge. Then, from January 1, 2025, to May 3, 2025, two companies, Grayscale Operating, LLC (GSO) and Grayscale Investments Sponsors, LLC (GSIS), shared the role as co-sponsors. After May 3, 2025, GSIS took over as the sole sponsor. So, there's been a bit of a shuffle in who's running the show behind the scenes.

What Could Go Wrong? Key Risks for Investors Now, let's talk about what could make investing in this Trust a bit bumpy. The Trust itself highlighted several important risks for investors to be aware of:

• Wild Price Swings: Stellar Lumens (XLM), like many digital assets, can have its price jump up and down really fast. This means the value of your shares could be very volatile and change quickly.
• New and Unpredictable Market: Digital assets are still pretty new, and it's hard to predict their long-term value. The Trust's success really depends on how widely XLM and other digital assets are accepted in the future.
• "Forks" and "Clones": Sometimes, a digital asset's underlying technology can split, creating new versions (like a 'fork' or 'clone'). This could negatively impact the value of the original XLM that the Trust holds.
• Recent Market Turmoil: The digital asset world has seen a lot of ups and downs recently, leading to big price drops and a general loss of trust. This kind of market instability can affect XLM and, by extension, your investment.
• Value Tied Directly to XLM: The value of your shares in the Trust is directly linked to the price of XLM. If XLM's price drops, so does the value of your investment.
• Unregulated Trading Platforms: Many platforms where digital assets are traded aren't heavily regulated. This lack of oversight can add risk and affect XLM's price stability.
• Competition: New digital assets are always popping up. If another digital asset becomes more popular or useful than XLM, it could hurt XLM's price and your investment.
• Reliance on Others: The Trust relies on other companies to handle important tasks, like holding the XLM. If these partners don't perform well, it could impact the Trust.

Key Takeaways This year's report highlights the Trust's market value at $36.9 million as of March 31, 2025, with 1.39 million shares available by November 20, 2025. There were also changes in the Trust's sponsorship structure, with Grayscale Investments Sponsors, LLC (GSIS) becoming the sole sponsor after May 3, 2025. The Trust emphasized several risks, including XLM's price volatility, the unpredictable nature of the digital asset market, potential impacts from "forks," recent market instability, and the direct link between the Trust's value and XLM's price. Other risks noted include unregulated trading platforms, competition from new digital assets, and reliance on third-party partners.