Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Nov. 16, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||||
Document Type | 10-K | ||||
Amendment Flag | false | ||||
Document Fiscal Year Focus | 2023 | ||||
Document Fiscal Period Focus | FY | ||||
Document Period End Date | Sep. 30, 2023 | ||||
Document Annual Report | true | ||||
Document Transition Report | false | ||||
Current Fiscal Year End Date | --09-30 | ||||
Entity Registrant Name | Grayscale Stellar Lumens Trust (XLM) | ||||
Entity Central Index Key | 0001761325 | ||||
Entity Well-known Seasoned Issuer | No | ||||
Entity Voluntary Filers | No | ||||
Entity Small Business | false | ||||
Entity Emerging Growth Company | true | ||||
Entity Ex Transition Period | true | ||||
ICFR Auditor Attestation Flag | false | ||||
Entity Public Float | $ 7,843,782 | ||||
Entity Common Stock, Shares Outstanding | 824,600 | ||||
Entity Shell Company | false | ||||
Entity Filer Category | Non-accelerated Filer | ||||
Entity Current Reporting Status | Yes | ||||
Entity Interactive Data Current | Yes | ||||
Securities Act File Number | 000-56434 | ||||
Entity Incorporation, State or Country Code | DE | ||||
Entity Tax Identification Number | 83-6545098 | ||||
Entity Address, Address Line One | 290 Harbor Drive, 4th Floor | ||||
Entity Address, Address Line Two | 4th Floor | ||||
City Area Code | 212 | ||||
Local Phone Number | 668-1427 | ||||
Entity Address, City or Town | Stamford | ||||
Entity Address, Postal Zip Code | 06902 | ||||
Entity Address, State or Province | CT | ||||
Title of 12(g) Security | Grayscale Stellar Lumens Trust (XLM) Shares | ||||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: None | ||||
Auditor Name | Marcum LLP | Friedman LLP | Friedman LLP | ||
Auditor Location | New York, New York | East Hanover, New Jersey | East Hanover, New Jersey | ||
Auditor Firm ID | 688 | 711 | 711 | ||
Document Financial Statement Error Correction [Flag] | false | ||||
Trading Symbol | GXLM |
STATEMENTS OF ASSETS AND LIABIL
STATEMENTS OF ASSETS AND LIABILITIES - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Assets [Abstract] | ||
Investment in XLM, at fair value (cost $18,479 and $18,947 as of September 30, 2023 and 2022, respectively) | $ 8,236 | $ 8,653 |
Total assets | 8,236 | 8,653 |
Liabilities: | ||
Sponsor's Fee payable, related party | 0 | 0 |
Total liabilities | 0 | 0 |
Net assets | 8,236 | 8,653 |
Net Assets consists of: | ||
Paid-in-capital | 19,760 | 19,760 |
Accumulated net investment loss | (1,073) | (886) |
Accumulated net realized (loss) gain on investment in XLM | (208) | 73 |
Accumulated net change in unrealized depreciation on investment in XLM | (10,243) | (10,294) |
Net Assets | $ 8,236 | $ 8,653 |
Shares issued and outstanding, no par value (unlimited Shares authorized) | 824,600 | 824,600 |
Net asset value per Share | $ 9.99 | $ 10.49 |
STATEMENTS OF ASSETS AND LIAB_2
STATEMENTS OF ASSETS AND LIABILITIES (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Financial Position [Abstract] | ||
Cost of investment in XLM, at fair value | $ 18,479 | $ 18,947 |
Common shares authorized | Unlimited | Unlimited |
Stock, par value | $ 0 | $ 0 |
SCHEDULES OF INVESTMENT
SCHEDULES OF INVESTMENT $ in Thousands | Sep. 30, 2023 USD ($) Xlm | Sep. 30, 2022 USD ($) Xlm |
Schedule of Investments [Line Items] | ||
Cost | $ 18,479 | $ 18,947 |
Fair Value | $ 8,236 | $ 8,653 |
% of Net Assets | 100% | 100% |
Investment in XLM | ||
Schedule of Investments [Line Items] | ||
Quantity of XLM | Xlm | 73,100,101.0441121 | 74,950,703.0854167 |
Cost | $ 18,479 | $ 18,947 |
Fair Value | $ 8,236 | $ 8,653 |
% of Net Assets | 100% | 100% |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investment income: | |||
Investment income | $ 0 | $ 0 | $ 0 |
Expenses: | |||
Sponsor's Fee, related party | 187 | 387 | 482 |
Net investment loss | (187) | (387) | (482) |
Net realized and unrealized (loss) gain from: | |||
Net realized (loss) gain on investment in XLM | (281) | (93) | 172 |
Net change in unrealized appreciation (depreciation) on investment in XLM | 51 | (12,209) | 2,149 |
Net realized and unrealized (loss) gain on investment | (230) | (12,302) | 2,321 |
Net (decrease) increase in net assets resulting from operations | $ (417) | $ (12,689) | $ 1,839 |
STATEMENTS OF CHANGES IN NET AS
STATEMENTS OF CHANGES IN NET ASSETS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
(Decrease) increase in net assets from operations: | |||||||
Net investment loss | $ (59) | $ (46) | $ (53) | $ (161) | $ (187) | $ (387) | $ (482) |
Net realized (loss) gain on investment in XLM | (58) | (73) | (67) | 38 | (281) | (93) | 172 |
Net change in unrealized appreciation (depreciation) on investment in XLM | 83 | (3,223) | 610 | (1,383) | 51 | (12,209) | 2,149 |
Net (decrease) increase in net assets resulting from operations | (417) | (12,689) | 1,839 | ||||
Increase in net assets from capital share transactions: | |||||||
Shares issued | 0 | 0 | 18,351 | ||||
Net increase in net assets resulting from capital share transactions | 0 | 0 | 18,351 | ||||
Total (decrease) increase in net assets from operations and capital share transactions | (417) | (12,689) | 20,190 | ||||
Net assets: | |||||||
Beginning of year | $ 8,653 | $ 21,342 | 8,653 | 21,342 | 1,152 | ||
End of year | $ 8,236 | $ 8,653 | $ 8,236 | $ 8,653 | $ 21,342 | ||
Change in Shares outstanding: | |||||||
Shares outstanding at beginning of year | 824,600 | 824,600 | 824,600 | 824,600 | 165,100 | ||
Shares issued | 0 | 0 | 659,500 | ||||
Net increase in Shares | 0 | 0 | 659,500 | ||||
Shares outstanding at end of year | 824,600 | 824,600 | 824,600 | 824,600 | 824,600 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (417) | $ (12,689) | $ 1,839 |
Insider Trading Policies and Pr
Insider Trading Policies and Procedures | 12 Months Ended |
Sep. 30, 2023 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Organization
Organization | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Grayscale Stellar Lumens Trust (XLM) (the “Trust”) is a Delaware Statutory Trust that was formed on October 26, 2018 and commenced operations on December 6, 2018. In general, the Trust holds Lumens (“XLM”) and, from time to time, issues common units of fractional undivided beneficial interest (“Shares”) (in minimum baskets of 100 Shares, referred to as “Baskets”) in exchange for XLM. The redemption of Shares is not currently contemplated and the Trust does not currently operate a redemption program. Subject to receipt of regulatory approval and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. The Trust currently has no intention of seeking regulatory approval to operate an ongoing redemption program. The Trust’s investment objective is for the value of the Shares (based on XLM per Share) to reflect the value of XLM held by the Trust, less the Trust’s expenses and other liabilities. The Trust may also receive Incidental Rights and/or IR Virtual Currency as a result of the Trust’s investment in XLM, in accordance with the terms of the Trust Agreement. Incidental Rights are rights to claim, or otherwise establish dominion and control over, any virtual currency or other asset or right, which rights are incident to the Trust’s ownership of XLM and arise without any action of the Trust, or of the Sponsor or Trustee on behalf of the Trust; IR Virtual Currency is any virtual currency tokens, or other asset or right, received by the Trust through the exercise (subject to the applicable provisions of the Trust Agreement) of any Incidental Right. Grayscale Investments, LLC (“Grayscale” or the “Sponsor”) acts as the Sponsor of the Trust and is a wholly owned subsidiary of Digital Currency Group, Inc. (“DCG”). The Sponsor is responsible for the day-to-day administration of the Trust pursuant to the provisions of the Trust Agreement. Grayscale is responsible for preparing and providing annual and quarterly reports on behalf of the Trust to investors and is also responsible for selecting and monitoring the Trust’s service providers. As partial consideration for the Sponsor’s services, the Trust pays Grayscale a Sponsor’s Fee as discussed in Note 6. The Sponsor also acts as the sponsor and manager of other investment products including Grayscale Basic Attention Token Trust (BAT) (OTCQB: GBAT), Grayscale Bitcoin Trust (BTC) (OTCQX: GBTC), Grayscale Bitcoin Cash Trust (BCH) (OTCQX: BCHG), Grayscale Chainlink Trust (LINK) (OTCQB: GLNK), Grayscale Decentraland Trust (MANA) (OTCQX: MANA), Grayscale Ethereum Trust (ETH) (OTCQX: ETHE), Grayscale Ethereum Classic Trust (ETC) (OTCQX: ETCG), Grayscale Filecoin Trust (FIL) (OTCQB: FILG), Grayscale Horizen Trust (ZEN) (OTCQX: HZEN), Grayscale Litecoin Trust (LTC) (OTCQX: LTCN), Grayscale Livepeer Trust (LPT) (OTCQB: GLIV), Grayscale Solana Trust (SOL) (OTCQB: GSOL), Grayscale Zcash Trust (ZEC) (OTCQX: ZCSH), Grayscale Decentralized Finance (DeFi) Fund LLC (OTCQB: DEFG), Grayscale Digital Large Cap Fund LLC (OTCQX: GDLC), and Grayscale Smart Contract Platform Ex Ethereum (ETH) Fund LLC, each of which is an affiliate of the Trust. The following investment products sponsored or managed by the Sponsor are also SEC reporting companies with their shares registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): Grayscale Bitcoin Trust (BTC), Grayscale Bitcoin Cash Trust (BCH), Grayscale Ethereum Trust (ETH), Grayscale Ethereum Classic Trust (ETC), Grayscale Horizen Trust (ZEN), Grayscale Litecoin Trust (LTC), Grayscale Zcash Trust (ZEC), and Grayscale Digital Large Cap Fund LLC. Grayscale Advisors, LLC, a Registered Investment Advisor and an affiliate of the Sponsor, is the advisor to the Grayscale Future of Finance (NYSE: GFOF) product. Authorized Participants of the Trust are the only entities who may place orders to create or, if permitted, redeem Baskets. Genesis Global Trading, Inc. (“Genesis” or, in such capacity, an “Authorized Participant”), a registered broker-dealer and wholly owned subsidiary of DCG, was the only Authorized Participant prior to October 3, 2022 and was party to a participant agreement with the Sponsor and the Trust. Effective October 3, 2022, Grayscale Securities, LLC (“Grayscale Securities” or, in such capacity, an “Authorized Participant”), a registered broker-dealer and wholly owned subsidiary of the Sponsor, is the only Authorized Participant, and is party to a participant agreement with the Sponsor and the Trust. As a result, since October 3, 2022, Genesis ceased acting as an Authorized Participant of the Trust, but served as a Liquidity Provider to Grayscale Securities from October 3, 2022 through September 12, 2023. The Authorized Participant has engaged an unaffiliated Liquidity Provider, and intends to engage additional Liquidity Providers who are unaffiliated with the Trust in the future. The custodian of the Trust is Coinbase Custody Trust Company, LLC (the “Custodian”), a third-party service provider. The Custodian is responsible for safeguarding the XLM, Incidental Rights, and IR Virtual Currency held by the Trust, and holding the private key(s) that provide access to the Trust’s digital wallets and vaults. The transfer agent for the Trust (the “Transfer Agent”) is Continental Stock Transfer & Trust Company. The responsibilities of the Transfer Agent are to maintain creations, redemptions, transfers, and distributions of the Trust’s Shares which are primarily held in book-entry form. On October 18, 2021, the Trust received notice that its Shares were qualified for public trading on the OTCQX U.S. Marketplace of the OTC Markets Group Inc. (“OTCQX”). The Trust’s trading symbol on OTCQX is “GXLM” and the CUSIP number for its Shares is 38963R105. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust: The financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Trust qualifies as an investment company for accounting purposes pursuant to the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies . The Trust uses fair value as its method of accounting for XLM in accordance with its classification as an investment company for accounting purposes. The Trust is not a registered investment company under the Investment Company Act of 1940. GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates and these differences could be material. The Trust conducts its transactions in XLM, including receiving XLM for the creation of Shares and delivering XLM for the redemption of Shares and for the payment of the Sponsor’s Fee. At this time, the Trust is not accepting redemption requests from shareholders. Since its inception, the Trust has not held cash or cash equivalents. Principal Market and Fair Value Determination To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s net asset value (“NAV”), the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for XLM in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that XLM is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust only receives XLM in connection with a creation order from the Authorized Participant (or its Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider on behalf of the Authorized Participant(s), may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”). In determining which of the eligible Digital Asset Markets is the Trust’s principal market, the Trust reviews these criteria in the following order: First, the Trust reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering (“AML”) and know-your-customer (“KYC”) regulations, and non-Digital Asset Exchange Markets that the Trust reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market. Second, the Trust sorts these Digital Asset Markets from high to low by market-based volume and level of activity of XLM traded on each Digital Asset Market in the trailing twelve months. Third, the Trust then reviews pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market. Fourth, the Trust then selects a Digital Asset Market as its principal market based on the highest market-based volume, level of activity and price stability in comparison to the other Digital Asset Markets on the list. Based on information reasonably available to the Trust, Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis, an Exchange Market has been selected as the Trust’s principal market. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market. The cost basis of XLM received in connection with a creation order is recorded by the Trust at the fair value of XLM at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. Investment Transactions and Revenue Recognition The Trust considers investment transactions to be the receipt of XLM for Share creations and the delivery of XLM for Share redemptions or for payment of expenses in XLM. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in XLM. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the ‘exit price’) in an orderly transaction between market participants at the measurement date. GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment. • Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly. • Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust. Fair Value Measurement Using (Amounts in thousands) Amount at Level 1 Level 2 Level 3 September 30, 2023 Assets Investment in XLM $ 8,236 $ 8,236 $ - $ - September 30, 2022 Assets Investment in XLM $ 8,653 $ - $ 8,653 $ - |
Fair Value of XLM
Fair Value of XLM | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of XLM | 3. Fair Value of XLM XLM is held by the Custodian on behalf of the Trust and is carried at fair value. As of September 30, 2023, 2022 and 2021 the Trust held 73,100,101.0441121 , 74,950,703.0854167 and 76,848,154.9650449 XLM, respectively. The Trust determined the fair value per XLM to be $ 0.11 , $ 0.12 , and $ 0.28 on September 30, 2023, 2022 and 2021 respectively, using the price provided at 4:00 p.m., New York time, by the Digital Asset Exchange Market considered to be the Trust’s principal market (Coinbase). The following represents the changes in quantity of XLM and the respective fair value: (Amounts in thousands, except XLM amounts) Quantity Fair Value Balance at September 30, 2020 15,775,928.2261500 $ 1,152 XLM contributed 62,429,377.3665027 18,351 XLM distributed for Sponsor's Fee, related party ( 1,357,150.6276078 ) ( 482 ) Net change in unrealized appreciation on investment in XLM - 2,149 Net realized gain on investment in XLM - 172 Balance at September 30, 2021 76,848,154.9650449 $ 21,342 XLM contributed - - XLM distributed for Sponsor's Fee, related party ( 1,897,451.8796282 ) ( 387 ) Net change in unrealized depreciation on investment in XLM - ( 12,209 ) Net realized loss on investment in XLM - ( 93 ) Balance at September 30, 2022 74,950,703.0854167 $ 8,653 XLM contributed - - XLM distributed for Sponsor's Fee, related party ( 1,850,602.0413046 ) ( 187 ) Net change in unrealized appreciation on investment in XLM - 51 Net realized loss on investment in XLM - ( 281 ) Balance at September 30, 2023 73,100,101.0441121 $ 8,236 |
Creations and Redemptions of Sh
Creations and Redemptions of Shares | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Creations and Redemptions of Shares | 4. Creations and Redemptions of Shares At September 30, 2023 and 2022, there were an unlimited number of Shares authorized by the Trust. The Trust creates (and, should the Trust commence a redemption program, redeems) Shares from time to time, but only in one or more Baskets. The creation and redemption of Baskets on behalf of investors are made by the Authorized Participant in exchange for the delivery of XLM to the Trust or the distribution of XLM by the Trust. The number of XLM required for each creation Basket or redemption Basket is determined by dividing (x) the number of XLM owned by the Trust at 4:00 p.m., New York time, on such trade date of a creation or redemption order, after deducting the number of XLM representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust, by (y) the number of Shares outstanding at such time and multiplying the quotient obtained by 100. Each Share represented approximately 88.6492 and 90.8934 of one XLM at September 30, 2023 and 2022, respectively. The decrease in the number of XLM represented by each Share is primarily a result of the periodic withdrawal of XLM to pay the Sponsor’s Fee. The cost basis of investments in XLM recorded by the Trust is the fair value of XLM, as determined by the Trust, at 4:00 p.m., New York time, on the date of transfer to the Trust by the Authorized Participant based on the creation Baskets. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of each Share to investors. The Authorized Participant may realize significant profits buying, selling, creating, and, if permitted, redeeming Shares as a result of changes in the value of Shares or XLM. At this time, the Trust is not operating a redemption program and is not accepting redemption requests. Subject to receipt of regulatory approval and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. The Trust currently has no intention of seeking regulatory approval to operate an ongoing redemption program. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes The Sponsor takes the position that the Trust is properly treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor trust, the Trust will not be subject to U.S. federal income tax. Rather, if the Trust is a grantor trust, each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s income, gain, losses and deductions will “flow through” to each beneficial owner of Shares. If the Trust were not properly classified as a grantor trust, the Trust might be classified as a partnership for U.S. federal income tax purposes. However, due to the uncertain treatment of digital assets, including forks, airdrops and similar occurrences for U.S. federal income tax purposes, there can be no assurance in this regard. If the Trust were classified as a partnership for U.S. federal income tax purposes, the tax consequences of owning Shares generally would not be materially different from the tax consequences described herein, although there might be certain differences, including with respect to timing. In addition, tax information reports provided to beneficial owners of Shares would be made in a different form. If the Trust were not classified as either a grantor trust or a partnership for U.S. federal income tax purposes, it would be classified as a corporation for such purposes. In that event, the Trust would be subject to entity-level U.S. federal income tax (currently at the rate of 21 %) on its net taxable income and certain distributions made by the Trust to shareholders would be treated as taxable dividends to the extent of the Trust’s current and accumulated earnings and profits. In accordance with GAAP, the Trust has defined the threshold for recognizing the benefits of tax return positions in the financial statements as “more-likely-than-not” to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the “more-likely-than-not” threshold, based on the largest benefit that is more than 50 % likely to be realized. Tax positions not deemed to meet the “more-likely-than-not” threshold are recorded as a tax benefit or expense in the current period. As of and during the years ended September 30, 2023, 2022, and 2021 , the Trust did no t have a liability for any unrecognized tax amounts. However, the Sponsor’s conclusions concerning its determination of “more-likely-than-not” tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance, and on-going analyses of and changes to tax laws, regulations and interpretations thereof. The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions related to federal, state and local income taxes existed as of September 30, 2023 or 2022 . |
Related Parties
Related Parties | 12 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 6. Related Parties The Trust considered the following entities, their directors, and certain employees to be related parties of the Trust as of September 30, 2023: DCG, Genesis, Grayscale, Grayscale Securities and CoinDesk Indices, Inc. As of September 30, 2023 and 2022, 110,393 and 118,192 , Shares of the Trust were held by related parties of the Trust, respectively. The Sponsor’s parent, an affiliate of the Trust, holds a minority interest in Coinbase, Inc., the parent company of the Custodian, that represents less than 1.0 % of Coinbase, Inc.’s ownership. In accordance with the Trust Agreement governing the Trust, the Trust pays a fee to the Sponsor, calculated as 2.5 % of the aggregate value of the Trust’s assets, less its liabilities (which include any accrued but unpaid expenses up to, but excluding, the date of calculation), as calculated and published by the Sponsor or its delegates in the manner set forth in the Trust Agreement (the “Sponsor’s Fee”). The Sponsor’s Fee accrues daily in U.S. dollars and is payable in XLM, monthly in arrears. The amount of XLM payable in respect of each daily U.S. dollar accrual will be determined by reference to the same U.S. dollar value of XLM used to determine such accrual. For purposes of these financial statements, the U.S. dollar value of XLM is determined by reference to the Digital Asset Exchange Market that the Trust considers its principal market as of 4:00 p.m., New York time, on each valuation date. The Trust held no Incidental Rights or IR Virtual Currency as of September 30, 2023 and 2022 . No Incidental Rights or IR Virtual Currencies have been distributed in payment of the Sponsor’s Fee during the years ended September 30, 2023, 2022 and 2021. As partial consideration for receipt of the Sponsor’s Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees and other expenses incurred by the Trust in the ordinary course of its affairs, excluding taxes, but including marketing fees; administrator fees, if any; custodian fees; transfer agent fees; trustee fees; the fees and expenses related to the listing, quotation or trading of the Shares on any secondary market (including customary legal, marketing and audit fees and expenses) in an amount up to $ 600,000 in any given fiscal year; ordinary course legal fees and expenses; audit fees; regulatory fees, including, if applicable, any fees relating to the registration of the Shares under the Securities Act or the Exchange Act; printing and mailing costs; the costs of maintaining the Trust’s website and applicable license fees (the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Additional Trust Expense will be deemed to be an Additional Trust Expense and not a Sponsor-paid Expense. The Trust may incur certain extraordinary, non-recurring expenses that are not Sponsor-paid Expenses, including, but not limited to, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust or the interests of shareholders (including in connection with any Incidental Rights and any IR Virtual Currency), any indemnification of the Custodian or other agents, service providers or counterparties of the Trust, the fees and expenses related to the listing, quotation or trading of the Shares on any secondary market (including legal, marketing and audit fees and expenses) to the extent exceeding $ 600,000 in any given fiscal year and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters (collectively “Additional Trust Expenses”). In such circumstances, the Sponsor or its delegate (i) will instruct the Custodian to withdraw from the Digital Asset Account XLM, Incidental Rights and/or IR Virtual Currency in such quantity as may be necessary to permit payment of such Additional Trust Expenses and (ii) may either (x) cause the Trust (or its delegate) to convert such XLM, Incidental Rights and/or IR Virtual Currency into U.S. dollars or other fiat currencies at the Actual Exchange Rate or (y) when the Sponsor incurs such expenses on behalf of the Trust, cause the Trust (or its delegate) to deliver such XLM, Incidental Rights and/or IR Virtual Currency in kind to the Sponsor in satisfaction of such Additional Trust Expenses. For the years ended September 30, 2023, 2022 and 2021, the Trust incurred Sponsor’s Fees of $ 186,863 , $ 387,231 and $ 480,785 , respectively. As of September 30, 2023 and 2022 , there were no accrued and unpaid Sponsor’s Fees. In addition, the Sponsor may pay Additional Trust Expenses on behalf of the Trust, which are reimbursable by the Trust to the Sponsor. For the years ended September 30, 2023, 2022 and 2021 , the Sponsor did no t pay any Additional Trust Expenses on behalf of the Trust. On March 2, 2022, the Board of the Sponsor (the “Board”) approved the purchase by DCG, the parent company of the Sponsor, of up to an aggregate total of $ 200 million worth of Shares of the Trust and shares of any of the following five investment products the Sponsor also acts as the sponsor and manager of, including Grayscale Bitcoin Trust (BTC) (OTCQX: GBTC), Grayscale Bitcoin Cash Trust (BCH) (OTCQX: BCHG), Grayscale Digital Large Cap Fund LLC (OTCQX: GDLC), Grayscale Ethereum Trust (ETH) (OTCQX: ETHE), and Grayscale Ethereum Classic Trust (ETC) (OTCQX: ETCG). Subsequently, DCG authorized such purchase. The Share purchase authorization does not obligate DCG to acquire any specific number of Shares in any period, and may be expanded, extended, modified, or discontinued at any time. From March 2, 2022 through September 30, 2023 , DCG did no t purchase any Shares of the Trust under this authorization. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Sep. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | 7. Risks and Uncertainties The Trust is subject to various risks including market risk, liquidity risk, and other risks related to its concentration in a single asset, XLM. Investing in XLM is currently highly speculative and volatile. The net asset value of the Trust relates primarily to the value of XLM held by the Trust, and fluctuations in the price of XLM could materially and adversely affect an investment in the Shares of the Trust. The price of XLM has a limited history. During such history, XLM prices have been volatile and subject to influence by many factors, including the levels of liquidity. If Digital Asset Markets continue to experience significant price fluctuations, the Trust may experience losses. Several factors may affect the price of XLM, including, but not limited to, global XLM supply and demand, theft of XLM from global exchanges or vaults, competition from other forms of digital currency or payment services, global or regional political, economic or financial conditions, and other unforeseen events and situations. The XLM held by the Trust are commingled and the Trust’s shareholders have no specific rights to any specific XLM. In the event of the insolvency of the Trust, its assets may be inadequate to satisfy a claim by its shareholders. There is currently no clearing house for XLM, nor is there a central or major depository for the custody of XLM. There is a risk that some or all of the Trust’s XLM could be lost or stolen. There can be no assurance that the Custodian will maintain adequate insurance or that such coverage will cover losses with respect to the Trust’s XLM. Further, transactions in XLM are irrevocable. Stolen or incorrectly transferred XLM may be irretrievable. As a result, any incorrectly executed XLM transactions could adversely affect an investment in the Shares. The Securities and Exchange Commission (the “SEC”) has stated that certain digital assets may be considered “securities” under the federal securities laws. The test for determining whether a particular digital asset is a “security” is complex and difficult to apply, and the outcome is difficult to predict. Public, though non-binding, statements by senior officials at the SEC have indicated that the SEC did not consider Bitcoin or Ethereum to be securities, and does not currently consider Bitcoin to be a security. The SEC staff also provided informal assurances to a handful of promoters that their digital assets are not securities. On the other hand, the SEC has brought enforcement actions against the issuers and promoters of several other digital assets on the basis that the digital assets in question are securities. If XLM is determined to be a “security” under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for XLM. For example, it may become more difficult for XLM to be traded, cleared and custodied as compared to other digital assets that are not considered to be securities, which could, in turn, negatively affect the liquidity and general acceptance of XLM and cause users to migrate to other digital assets. As such, any determination that XLM is a security under federal or state securities laws may adversely affect the value of XLM and, as a result, an investment in the Shares. In addition, if XLM is in fact a security, the Trust could be considered an unregistered “investment company” under the Investment Company Act of 1940, which could necessitate the Trust’s liquidation. In this case, the Trust and the Sponsor may be deemed to have participated in an illegal offering of securities and there is no guarantee that the Sponsor will be able to register the Trust under the Investment Company Act of 1940 at such time or take such other actions as may be necessary to ensure the Trust’s activities comply with applicable law, which could force the Sponsor to liquidate the Trust. To the extent a private key required to access an XLM address is lost, destroyed or otherwise compromised and no backup of the private keys are accessible, the Trust may be unable to access the XLM controlled by the private key and the private key will not be capable of being restored by the Stellar Network. The processes by which XLM transactions are settled are dependent on the peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of XLM. The Trust relies on third-party service providers to perform certain functions essential to its operations. Any disruptions to the Trust’s service providers’ business operations resulting from business failures, financial instability, security failures, government mandated regulation or operational problems could have an adverse impact on the Trust’s ability to access critical services and be disruptive to the operations of the Trust. The Sponsor and the Trust may be subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business. |
Quarterly Statements of Operati
Quarterly Statements of Operations | 12 Months Ended |
Sep. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Statements of Operations | 8. Quarterly Statements of Operations Fiscal Year Ended September 30, 2023 Three Months Ended (Amounts in thousands) Dec-31, 2022 Mar-31, 2023 Jun-30, 2023 Sept-30, 2023 Year Ended Expenses Sponsor's Fee, related party $ 46 $ 40 $ 42 $ 59 $ 187 Net investment loss $ ( 46 ) $ ( 40 ) $ ( 42 ) $ ( 59 ) $ ( 187 ) Net realized and unrealized (loss) gain from: Net realized loss on investment in XLM ( 73 ) ( 76 ) ( 74 ) ( 58 ) ( 281 ) Net change in unrealized (depreciation) appreciation on investment in XLM ( 3,223 ) 2,989 202 83 51 Net realized and unrealized (loss) gain on investment ( 3,296 ) 2,913 128 25 ( 230 ) Net (decrease) increase in net assets resulting from operations $ ( 3,342 ) $ 2,873 $ 86 $ ( 34 ) $ ( 417 ) Fiscal Year Ended September 30, 2022 Three Months Ended (Amounts in thousands) Dec-31, 2021 Mar-31, 2022 Jun-30, 2022 Sept-30, 2022 Year Ended Expenses Sponsor's Fee, related party $ 161 $ 100 $ 73 $ 53 $ 387 Net investment loss $ ( 161 ) $ ( 100 ) $ ( 73 ) $ ( 53 ) $ ( 387 ) Net realized and unrealized (loss) gain from: Net realized gain (loss) on investment in XLM 38 ( 18 ) ( 46 ) ( 67 ) ( 93 ) Net change in unrealized (depreciation) appreciation on investment in XLM ( 1,383 ) ( 1,922 ) ( 9,514 ) 610 ( 12,209 ) Net realized and unrealized (loss) gain on investment ( 1,345 ) ( 1,940 ) ( 9,560 ) 543 ( 12,302 ) Net (decrease) increase in net assets resulting from operations $ ( 1,506 ) $ ( 2,040 ) $ ( 9,633 ) $ 490 $ ( 12,689 ) |
Financial Highlights Per Share
Financial Highlights Per Share Performance | 12 Months Ended |
Sep. 30, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Financial Highlights Per Share Performance | 9. Financial Highlights Per Share Performance Years Ended September 30, 2023 2022 2021 Per Share Data: Net asset value, beginning of year $ 10.49 $ 25.88 $ 6.97 Net (decrease) increase in net assets from investment operations: Net investment loss ( 0.23 ) ( 0.47 ) ( 0.83 ) Net realized and unrealized (loss) gain ( 0.27 ) ( 14.92 ) 19.74 Net (decrease) increase in net assets resulting from operations ( 0.50 ) ( 15.39 ) 18.91 Net asset value, end of year $ 9.99 $ 10.49 $ 25.88 Total return - 4.77 % - 59.47 % 271.31 % Ratios to average net assets: Net investment loss - 2.50 % - 2.50 % - 2.50 % Expenses - 2.50 % - 2.50 % - 2.50 % An individual shareholder’s return, ratios, and per Share performance may vary from those presented above based on the timing of Share transactions. The amount shown for a Share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the number of Shares issued in Creations occurring at an operational value derived from an operating metric as defined in the Trust Agreement. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the year and assuming redemption on the last day of the year. |
Indemnifications
Indemnifications | 12 Months Ended |
Sep. 30, 2023 | |
Indemnifications Disclosure [Abstract] | |
Indemnifications | 10. Indemnifications In the normal course of business, the Trust enters into certain contracts that provide a variety of indemnities, including contracts with the Sponsor and affiliates of the Sponsor, DCG and its officers, directors, employees, subsidiaries and affiliates, and the Custodian as well as others relating to services provided to the Trust. The Trust’s maximum exposure under these and its other indemnities is unknown. However, no liabilities have arisen under these indemnities in the past and, while there can be no assurances in this regard, there is no expectation that any will occur in the future. Therefore, the Sponsor does not consider it necessary to record a liability in this regard. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. Subsequent Events As of the close of business on November 16, 2023 , the fair value of XLM determined in accordance with the Trust’s accounting policy was $ 0.12 per XLM. On November 20, 2023 it was announced that the Index Provider was acquired by an unaffiliated third party. This transaction is not expected to have any impact on the Trust, or disrupt the operations of the Trust. There are no known events that have occurred that require disclosure other than that which has already been disclosed in these notes to the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Principal Market and Fair Value Determination | Principal Market and Fair Value Determination To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s net asset value (“NAV”), the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10 determines fair value to be the price that would be received for XLM in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Trust to assume that XLM is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust only receives XLM in connection with a creation order from the Authorized Participant (or its Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider on behalf of the Authorized Participant(s), may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets, each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”). In determining which of the eligible Digital Asset Markets is the Trust’s principal market, the Trust reviews these criteria in the following order: First, the Trust reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering (“AML”) and know-your-customer (“KYC”) regulations, and non-Digital Asset Exchange Markets that the Trust reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market. Second, the Trust sorts these Digital Asset Markets from high to low by market-based volume and level of activity of XLM traded on each Digital Asset Market in the trailing twelve months. Third, the Trust then reviews pricing fluctuations and the degree of variances in price on Digital Asset Markets to identify any material notable variances that may impact the volume or price information of a particular Digital Asset Market. Fourth, the Trust then selects a Digital Asset Market as its principal market based on the highest market-based volume, level of activity and price stability in comparison to the other Digital Asset Markets on the list. Based on information reasonably available to the Trust, Exchange Markets have the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets as opposed to the Brokered Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis, an Exchange Market has been selected as the Trust’s principal market. The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market. The cost basis of XLM received in connection with a creation order is recorded by the Trust at the fair value of XLM at 4:00 p.m., New York time, on the creation date for financial reporting purposes. The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors. |
Investment Transactions and Revenue Recognition | Investment Transactions and Revenue Recognition The Trust considers investment transactions to be the receipt of XLM for Share creations and the delivery of XLM for Share redemptions or for payment of expenses in XLM. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in XLM. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the ‘exit price’) in an orderly transaction between market participants at the measurement date. GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Trust. Unobservable inputs reflect the Trust’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment. • Level 2 – Valuations based on quoted prices in markets that are not active or for which significant inputs are observable, either directly or indirectly. • Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust. Fair Value Measurement Using (Amounts in thousands) Amount at Level 1 Level 2 Level 3 September 30, 2023 Assets Investment in XLM $ 8,236 $ 8,236 $ - $ - September 30, 2022 Assets Investment in XLM $ 8,653 $ - $ 8,653 $ - |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Fair Value Estimates | Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Trust. Fair Value Measurement Using (Amounts in thousands) Amount at Level 1 Level 2 Level 3 September 30, 2023 Assets Investment in XLM $ 8,236 $ 8,236 $ - $ - September 30, 2022 Assets Investment in XLM $ 8,653 $ - $ 8,653 $ - |
Fair Value of XLM (Tables)
Fair Value of XLM (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Quantity of XLM and the Respective Fair Value | The following represents the changes in quantity of XLM and the respective fair value: (Amounts in thousands, except XLM amounts) Quantity Fair Value Balance at September 30, 2020 15,775,928.2261500 $ 1,152 XLM contributed 62,429,377.3665027 18,351 XLM distributed for Sponsor's Fee, related party ( 1,357,150.6276078 ) ( 482 ) Net change in unrealized appreciation on investment in XLM - 2,149 Net realized gain on investment in XLM - 172 Balance at September 30, 2021 76,848,154.9650449 $ 21,342 XLM contributed - - XLM distributed for Sponsor's Fee, related party ( 1,897,451.8796282 ) ( 387 ) Net change in unrealized depreciation on investment in XLM - ( 12,209 ) Net realized loss on investment in XLM - ( 93 ) Balance at September 30, 2022 74,950,703.0854167 $ 8,653 XLM contributed - - XLM distributed for Sponsor's Fee, related party ( 1,850,602.0413046 ) ( 187 ) Net change in unrealized appreciation on investment in XLM - 51 Net realized loss on investment in XLM - ( 281 ) Balance at September 30, 2023 73,100,101.0441121 $ 8,236 |
Quarterly Statements of Opera_2
Quarterly Statements of Operations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Statements of Operations | Fiscal Year Ended September 30, 2023 Three Months Ended (Amounts in thousands) Dec-31, 2022 Mar-31, 2023 Jun-30, 2023 Sept-30, 2023 Year Ended Expenses Sponsor's Fee, related party $ 46 $ 40 $ 42 $ 59 $ 187 Net investment loss $ ( 46 ) $ ( 40 ) $ ( 42 ) $ ( 59 ) $ ( 187 ) Net realized and unrealized (loss) gain from: Net realized loss on investment in XLM ( 73 ) ( 76 ) ( 74 ) ( 58 ) ( 281 ) Net change in unrealized (depreciation) appreciation on investment in XLM ( 3,223 ) 2,989 202 83 51 Net realized and unrealized (loss) gain on investment ( 3,296 ) 2,913 128 25 ( 230 ) Net (decrease) increase in net assets resulting from operations $ ( 3,342 ) $ 2,873 $ 86 $ ( 34 ) $ ( 417 ) Fiscal Year Ended September 30, 2022 Three Months Ended (Amounts in thousands) Dec-31, 2021 Mar-31, 2022 Jun-30, 2022 Sept-30, 2022 Year Ended Expenses Sponsor's Fee, related party $ 161 $ 100 $ 73 $ 53 $ 387 Net investment loss $ ( 161 ) $ ( 100 ) $ ( 73 ) $ ( 53 ) $ ( 387 ) Net realized and unrealized (loss) gain from: Net realized gain (loss) on investment in XLM 38 ( 18 ) ( 46 ) ( 67 ) ( 93 ) Net change in unrealized (depreciation) appreciation on investment in XLM ( 1,383 ) ( 1,922 ) ( 9,514 ) 610 ( 12,209 ) Net realized and unrealized (loss) gain on investment ( 1,345 ) ( 1,940 ) ( 9,560 ) 543 ( 12,302 ) Net (decrease) increase in net assets resulting from operations $ ( 1,506 ) $ ( 2,040 ) $ ( 9,633 ) $ 490 $ ( 12,689 ) |
Financial Highlights Per Shar_2
Financial Highlights Per Share Performance (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Investment Company, Financial Highlights [Abstract] | |
Schedule of Financial Highlights Per Share Performance | Years Ended September 30, 2023 2022 2021 Per Share Data: Net asset value, beginning of year $ 10.49 $ 25.88 $ 6.97 Net (decrease) increase in net assets from investment operations: Net investment loss ( 0.23 ) ( 0.47 ) ( 0.83 ) Net realized and unrealized (loss) gain ( 0.27 ) ( 14.92 ) 19.74 Net (decrease) increase in net assets resulting from operations ( 0.50 ) ( 15.39 ) 18.91 Net asset value, end of year $ 9.99 $ 10.49 $ 25.88 Total return - 4.77 % - 59.47 % 271.31 % Ratios to average net assets: Net investment loss - 2.50 % - 2.50 % - 2.50 % Expenses - 2.50 % - 2.50 % - 2.50 % |
Organization - Additional Infor
Organization - Additional Information (Details) | Sep. 30, 2023 shares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Common units issued, minimum basket | 100 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Fair Value Estimates (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Assets | ||||
Investment in XLM | $ 8,236 | $ 8,653 | $ 21,342 | $ 1,152 |
Level 1 | ||||
Assets | ||||
Investment in XLM | 8,236 | 0 | ||
Level 2 | ||||
Assets | ||||
Investment in XLM | 0 | 8,653 | ||
Level 3 | ||||
Assets | ||||
Investment in XLM | $ 0 | $ 0 |
Fair Value of XLM - Additional
Fair Value of XLM - Additional Information (Details) | Sep. 30, 2023 Xlm $ / shares | Sep. 30, 2022 Xlm $ / shares | Sep. 30, 2021 Xlm $ / shares |
Fair Value Disclosures [Abstract] | |||
Investment owned balance shares held by custodian | Xlm | 73,100,101.0441121 | 74,950,703.0854167 | 76,848,154.9650449 |
XLM fair value per share | $ / shares | $ 0.11 | $ 0.12 | $ 0.28 |
Fair Value of XLM - Summary of
Fair Value of XLM - Summary of Changes in Quantity of XLM and the Respective Fair Value (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2023 USD ($) Xlm | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) Xlm | Sep. 30, 2022 USD ($) Xlm | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Xlm | Sep. 30, 2023 USD ($) Xlm | Sep. 30, 2022 USD ($) Xlm | Sep. 30, 2021 USD ($) Xlm | |
Fair Value Disclosures [Abstract] | |||||||||||
Investment Owned, Balance | Xlm | 74,950,703.0854167 | 76,848,154.9650449 | 74,950,703.0854167 | 76,848,154.9650449 | 15,775,928.22615 | ||||||
XLM contributed | Xlm | 0 | 0 | 62,429,377.3665027 | ||||||||
XLM distributed for Sponsor's Fee, related party | Xlm | (1,850,602.0413046) | (1,897,451.8796282) | (1,357,150.6276078) | ||||||||
Net change in unrealized appreciation (depreciation) on investment in XLM | Xlm | 0 | 0 | 0 | ||||||||
Net realized gain (loss) on investment in XLM | Xlm | 0 | 0 | 0 | ||||||||
Investment Owned, Balance | Xlm | 73,100,101.0441121 | 74,950,703.0854167 | 73,100,101.0441121 | 74,950,703.0854167 | 76,848,154.9650449 | ||||||
Investment Owned, at Fair Value | $ | $ 8,653 | $ 21,342 | $ 8,653 | $ 21,342 | $ 1,152 | ||||||
XLM contributed | $ | 0 | 0 | 18,351 | ||||||||
XLM distributed for Sponsor's Fee, related party | $ | (187) | (387) | (482) | ||||||||
Net change in unrealized appreciation (depreciation) on investment in XLM | $ | $ 83 | $ 202 | $ 2,989 | (3,223) | $ 610 | $ (9,514) | $ (1,922) | (1,383) | 51 | (12,209) | 2,149 |
Net realized gain (loss) on investment in XLM | $ | (58) | $ (74) | $ (76) | $ (73) | (67) | $ (46) | $ (18) | $ 38 | (281) | (93) | 172 |
Investment Owned, at Fair Value | $ | $ 8,236 | $ 8,653 | $ 8,236 | $ 8,653 | $ 21,342 |
Creations and Redemptions of _2
Creations and Redemptions of Shares - Additional Information (Details) - Xlm | Sep. 30, 2023 | Sep. 30, 2022 |
Equity [Abstract] | ||
Share represented as XML | 88.6492 | 90.8934 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Contingency [Line Items] | |||
Federal income tax rate | 21% | ||
Minimum percentage of tax positions | 50% | ||
Liability for unrecognized tax amount | $ 0 | $ 0 | $ 0 |
Federal Income Taxes | |||
Income Tax Contingency [Line Items] | |||
Reserves for uncertain tax positions | 0 | 0 | |
State and Local Income Taxes | |||
Income Tax Contingency [Line Items] | |||
Reserves for uncertain tax positions | $ 0 | $ 0 |
Related Parties - Additional In
Related Parties - Additional Information (Details) | 12 Months Ended | 19 Months Ended | |||
Sep. 30, 2023 USD ($) Right shares | Sep. 30, 2022 USD ($) Right shares | Sep. 30, 2021 USD ($) Right | Sep. 30, 2023 USD ($) Right shares | Mar. 02, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Shares of the Trust, held by related parties | shares | 110,393 | 118,192 | 110,393 | ||
Related party sponsor fee percentage | 2.50% | ||||
Number of Incidental Rights held | Right | 0 | 0 | 0 | ||
Number of Incidental Rights distributed | Right | 0 | 0 | 0 | ||
Additional trust expenses paid by sponsor | $ 0 | $ 0 | $ 0 | ||
Sponsor's Parent | Coinbase Inc | |||||
Related Party Transaction [Line Items] | |||||
Percentage of minority interest owned | 1% | 1% | |||
Sponsor | |||||
Related Party Transaction [Line Items] | |||||
Related party maximum transaction in a fiscal year | $ 600,000 | ||||
Non Sponsor Paid Expenses | |||||
Related Party Transaction [Line Items] | |||||
Related party maximum transaction in a fiscal year | 600,000 | ||||
DCG | |||||
Related Party Transaction [Line Items] | |||||
Number of authorized shares purchased of the trust | shares | 0 | ||||
DCG | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Common stock value, shares authorized | $ 200,000,000 | ||||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Sponsor's fees incurred | 186,863 | 387,231 | $ 480,785 | ||
Accrued and unpaid Sponsor's Fees | $ 0 | $ 0 | $ 0 |
Quarterly Statements of Opera_3
Quarterly Statements of Operations - Schedule of Quarterly Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Expenses: | |||||||||||
Sponsor's Fee, related party | $ 59 | $ 42 | $ 40 | $ 46 | $ 53 | $ 73 | $ 100 | $ 161 | $ 187 | $ 387 | $ 482 |
Net investment loss | (59) | (42) | (40) | (46) | (53) | (73) | (100) | (161) | (187) | (387) | (482) |
Net realized and unrealized gain (loss) from: | |||||||||||
Net realized gain (loss) on investment in XLM | (58) | (74) | (76) | (73) | (67) | (46) | (18) | 38 | (281) | (93) | 172 |
Net change in unrealized (depreciation) appreciation on investment in XLM | 83 | 202 | 2,989 | (3,223) | 610 | (9,514) | (1,922) | (1,383) | 51 | (12,209) | 2,149 |
Net realized and unrealized (loss) gain on investment | 25 | 128 | 2,913 | (3,296) | 543 | (9,560) | (1,940) | (1,345) | (230) | (12,302) | $ 2,321 |
Net (decrease) increase in net assets resulting from operations | $ (34) | $ 86 | $ 2,873 | $ (3,342) | $ 490 | $ (9,633) | $ (2,040) | $ (1,506) | $ (417) | $ (12,689) |
Financial Highlights Per Shar_3
Financial Highlights Per Share Performance - Schedule of Financial Highlights Per Share Performance (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investment Company, Financial Highlights [Roll Forward] | |||
Net asset value, beginning of year | $ 10.49 | $ 25.88 | $ 6.97 |
Net (decrease) increase in net assets from investment operations: | |||
Net investment loss | (0.23) | (0.47) | (0.83) |
Net realized and unrealized (loss) gain | (0.27) | (14.92) | 19.74 |
Net (decrease) increase in net assets resulting from operations | (0.50) | (15.39) | 18.91 |
Net asset value, end of year | $ 9.99 | $ 10.49 | $ 25.88 |
Total return | (4.77%) | (59.47%) | 271.31% |
Ratios to average net assets: | |||
Net investment loss | (2.50%) | (2.50%) | (2.50%) |
Expenses | (2.50%) | (2.50%) | (2.50%) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | Nov. 16, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Subsequent Event [Line Items] | ||||
XLM fair value per share | $ 0.11 | $ 0.12 | $ 0.28 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
XLM business closing date | Nov. 16, 2023 | |||
XLM fair value per share | $ 0.12 |