Canary Capital’s XRP ETF (XRPC) saw its net assets drop by $81.6 million in the first half of 2026, even after net capital-share transactions added $82.4 million, according to an unaudited Form 10-Q filed with the SEC on August 7. The fund’s net assets fell from $322.8 million at the end of 2025 to $241.2 million on June 30, 2026, driven primarily by a $164.0 million decrease from operations, of which $159.7 million was unrealized depreciation on its XRP holdings.
The filing reveals a stark contrast: while outstanding shares rose from 16.49 million to 21.77 million and the trust’s XRP holdings grew 31.7% to 231.3 million tokens, the fair value of that position plummeted because XRP’s price tumbled 43.27% from $1.84 to $1.04 over the same period. The fund created 5.65 million shares and redeemed only 370,000, indicating positive net capital activity. However, the $82.36 million increase from share sales ($88.26 million sold minus $5.90 million redeemed) was overwhelmed by the accounting loss on the cryptocurrency.
Canary’s prospectus allows authorized participants to create and redeem baskets using cash or XRP in-kind, so the $82.4 million figure is not purely retail investor cash inflows; it includes in-kind creations. The fund purchased 34.13 million XRP for $52.20 million and received 25.93 million XRP worth $36.05 million via in-kind creations. It sold 3.93 million XRP for $5.90 million to meet redemptions, recording a $3.26 million realized loss.
The performance underscores the challenge for crypto ETFs when underlying asset prices fall sharply. XRPC’s NAV return was -42.84% for the six months through June 30, and further declined to -43.93% by August 7. The ETF’s market price return was -44.22% year-to-date. Despite the asset decline, net capital activity remained positive, showing continued demand for XRP exposure, but depreciation erased nearly double the amount added by investors.
