Evernorth Holdings, a treasury management firm, commenced trading of its shares on NASDAQ today under the ticker XRPN, following a completed merger with Armada Acquisition Corp. II. The event, marked by a symbolic closing bell ceremony at 4:00 p.m. New York time, signifies Wall Street’s entry into the world’s largest public fund backed by the XRP token. Despite the celebratory atmosphere, trading began amid significant market discounts and regulatory restrictions.
Active Strategy Sets XRPN Apart
The XRPN fund differs from conventional spot ETFs by adopting an actively managed investment strategy. Steering the fund are Asheesh Birla, previously with Ripple, and Hugo Jeandesboz, who served as chief investment officer at Coinbase Asset Management. The duo aims to allocate both fiat capital and XRP reserves into decentralized finance (DeFi) strategies and institutional lending opportunities within the XRP Ledger network. Their objective is to deliver consistent growth in the amount of XRP represented by each fund share.
Unlike passive vehicles, actively managed crypto funds pursue dynamic allocation strategies responsive to ongoing market conditions. This can potentially enhance returns but also introduces greater complexity and operational risk.
Mini dictionary: XRP Ledger — An open-source blockchain designed for fast, low-cost global payments and decentralized financial applications.
Lengthy Merger Results in Major Valuation Hit
The extended timeline of the merger took a toll on Evernorth’s balance sheet. The merger terms were finalized in late 2025 when XRP traded at $2.37. However, by the time of the NASDAQ listing, XRP had fallen to a range between $1.34 and $1.40. As a result, Evernorth’s combined assets — 473 million XRP and approximately $300 million in fiat currency — experienced a “paper” loss of roughly $450 million on their books.
Investor confidence appeared subdued. Around 80.3% of initial investors in the SPAC original pool chose to redeem their shares for cash at $10.58 each, rather than converting into XRPN holdings. Consequently, the fund’s actual free float on NASDAQ has contracted to just 4.5 million shares, signaling constrained liquidity and a heightened risk of price volatility.
| Metric | At Merger Agreement | At Listing |
|---|---|---|
| XRP Price | $2.37 | $1.34–$1.40 |
| Fiat Holdings | ~$300 million | ~$300 million |
| XRP Holdings | 473 million XRP | 473 million XRP |
| SPAC Redemption | N/A | 80.3% opted for cash |
| Free Float | N/A | 4.5 million shares |
Industry observers cautioned that such low liquidity will likely trigger rapid price swings and squeezes for XRPN shares.
Major Shareholders, Regulatory Lock-Ups, and Market Reaction
The XRPN fund’s shareholder structure features several notable names. Japanese financial services conglomerate SBI Holdings emerged with the largest voting stake at 39.9%. Venture capital firm Arrington Capital, which contributed 211 million XRP to the fund, holds 19.9%. Ripple co-founder Chris Larsen, acting through a trust, commands a 9.9% share. Ripple Labs itself, which provided 177 million XRP, is capped at a 9.9% stake.
To prevent substantial insider selling, the US Securities and Exchange Commission (SEC) has enforced a six-month lock-up. This restriction covers Arrington Capital, Chris Larsen, and Ripple, prohibiting them from selling shares on the open market until April 2027.
Trading in the spot XRP market followed a familiar pattern, with a surge on anticipation but a decline after the event. Since Evernorth had accumulated its entire XRP position through over-the-counter deals rather than using open exchanges, the expected demand surge did not materialize for existing market liquidity. Following a temporary spike above $1.55, XRP pulled back to $1.34–$1.36 over the course of the week.
Evernorth closed its merger at a time when XRP stood at $2.37, but by the time of listing, the token’s drop to nearly $1.35 slashed $450 million in value from the fund’s treasury, amplifying concerns about volatility and market sentiment.
