The 21Shares XRP ETF (TOXR) posted a net asset value loss of 18.73% for the first nine months of 2026, according to the fund’s latest SEC filing. Despite a strong third-quarter rally, the ETF’s returns remained in negative territory compared to the start of the year.
Q3 rally outpaces ETF’s annual losses
Between July and September, TOXR’s net asset value per share climbed from $10.16 to $14.49, reflecting a quarterly return of 42.62% after fund expenses. This upturn nearly matched XRP’s own gain of 42.72%, as the cryptocurrency rose from $1.0431 at the end of June to $1.4887 by September 30.
However, the recovery could not offset earlier declines. Over the first nine months of 2026, XRP itself fell 18.53%, while TOXR’s NAV return closely mirrored that performance with an 18.73% drop. During this period, TOXR adopted the FTSE XRP Index as its benchmark, but the filing stated the change did not materially impact the fund’s reported results.
TOXR registered a third-quarter NAV increase of 42.62%, yet the ETF ended September with a cumulative loss of 18.73% for the first nine months of 2026, even after switching benchmarks during the year.
Investor redemptions weigh on fund’s XRP holdings
TOXR’s SEC filing highlighted a significant decline in the fund’s XRP holdings, which fell from approximately 135.6 million tokens at the start of 2026 to 107.3 million by the end of September. Investor activity played a substantial role: Shareholders redeemed 4.55 million ETF shares during the period, equivalent to $78.8 million, while only 1.68 million new shares were created, totaling $28.3 million in inflows.
These outflows resulted in about $50.5 million in net capital withdrawn from the fund in the first nine months of 2026. At quarter-end, TOXR’s remaining XRP had an accounting cost of $223 million but a market value of $159.7 million, translating to roughly $63.3 million in unrealized paper losses on its holdings.
It is important to note that these unrealized losses do not directly translate to losses for every investor, as actual outcomes depend on individual purchase and sale prices within the ETF.
Market performance and ETF investor returns
While XRP ETFs have attracted considerable investment, with major US funds reportedly accumulating about $1.8 billion in inbound capital, the 21Shares report indicates that investor returns have not kept pace with net inflows. Many earlier estimates of investor losses are based on assumed entry prices, but the official SEC filing outlines actual fund performance over the stated period.
The report also underscores the distinction between institutional demand reflected in ETF inflows and outflows, and the secondary-market trading activity for XRP. Fund redemptions and net asset declines occurred even as broader trading volumes showed less volatility, highlighting the independence of institutional investor behavior from price movement alone.
Given the sharp shifts in TOXR’s performance and ongoing uncertainties impacting the XRP ETF market, real-time monitoring tools can provide investors with critical decision-making support. By leveraging CryptoAppsy’s smart price alerts and live news monitoring, market participants can react more quickly to disclosures like those in the 21Shares SEC filing, tracking both sudden fund flows and price volatility as they occur.
ETF flow stagnation in recent months suggests that, despite significant earlier inflows, the market remains cautious. Challenges persist in attracting new capital, even as quarterly recoveries intermittently boost fund performance.
The 21Shares filing confirms its NAV return for the first nine months of 2026 remained negative, providing a clearer measure of fund performance for XRP-focused investors compared to estimates based solely on acquisition costs.
