The Canary XRP ETF (XRPC) attracted $82.36 million in net capital-share transactions during the first half of 2026, a sign of investor interest in the fund. But the same period brought a sharp decline in XRP's value, and that wiped out the benefit. Net assets fell to $241.2 million from $322.8 million at the end of 2025, a drop of $81.65 million, according to an unaudited Form 10-Q filed Aug 7.
Why the fund lost $164 million from operations
The drop in net assets stems from a $164.00 million decrease from operations. Unrealized depreciation on XRP accounted for $159.70 million of that. Realized losses added another $3.59 million, and net investment loss came to $716,898. In other words, the price slide on XRP did most of the damage, not trading activity or fees.
More XRP held, but at lower prices
Despite the losses, the fund increased its XRP holdings to 231.3 million coins as of June 30, up 55.7 million (31.7%) from 175.6 million at the end of 2025. That means it added XRP during the period, likely through in-kind contributions. At the same time, it sold 3.93 million XRP to fund redemptions, recording a $3.26 million realized loss on those sales.
The fine print on that $82 million
The $82.36 million in net capital-share transactions is not the same as cash flowing into the fund. Authorized participants can settle share creations or redemptions in cash or in XRP itself. The filing doesn't disclose the mix, so it's unclear how much of that $82.36 million actually changed the fund's cash position. That distinction matters because in-kind settlements don't add cash to the fund's balance sheet.
The fund's next quarterly filing will show whether the trend of rising XRP holdings and falling assets continues. The 10-Q, filed Aug 7, leaves the cash-versus-in-kind split unanswered, so investors will have to wait for more detail on how the fund is managing its liquidity.
