Canary Capital’s XRP ETF, trading under the ticker XRPC, recorded a sharp decline in net assets during the first half of 2026, as ongoing weakness in XRP prices outpaced fresh investor inflows.
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AAPLNet Asset Decline Despite Inflows
The fund’s unaudited mid-year report, filed on August 7, shows net assets dropped from $322.8 million at the end of December 2025 to $241.2 million by June 2026. This represents a decrease of $81.6 million over the six-month period.
Despite this decline, investors added $82.4 million through capital-share transactions during the same period. However, the falling valuation of XRP led to $159.7 million in unrealized losses, quickly erasing the benefits of these new inflows.
Net asset value fell from $322.8 million to $241.2 million over the first half of 2026, even as investors contributed $82.4 million in new share purchases, largely due to $159.7 million in unrealized losses amid XRP’s price drop.
Share sale activity during the period amounted to $88.26 million, while redemptions totaled $5.90 million. The redemption process may involve settling in cash or XRP, though the report does not specify the breakdown.
XRP Holdings Increase, Dollar Value Drops
By the end of June 2026, the fund held 231.3 million XRP, up from 175.6 million at the close of December 2025. This marked a 31.7% increase in XRP holdings within six months. Still, the expanded holdings could not compensate for the token’s falling price.
To manage redemptions, the fund sold 3.93 million XRP during the six-month period, which led to a realized loss of $3.26 million. This loss affected the fund as a whole and did not directly reflect the experience of each individual investor.
Operating losses from the fund’s activities reached $164 million, mostly due to changes in the market value of its XRP holdings. Of this amount, $159.7 million was linked to unrealized depreciation. An additional $3.59 million was posted as realized losses, and $716,898 reflected net investment loss.
Growing Token Count Fails to Offset Price Pressure
Capital-share activity remained positive throughout the first half, as new share creations consistently exceeded redemptions. However, the rapid decline in XRP’s price was the dominant influence on the fund’s value, overwhelming gains from increased investor demand.
The period closed with the ETF holding significantly more XRP tokens but seeing their market value fall sharply when compared to six months before. Net assets declined by $81.6 million, even as investor appetite for exposure to the asset continued.
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The ETF’s experience in the first half of 2026 underscores the influence that underlying digital asset prices can exert, regardless of ongoing demand or the scale of inflows from investors. Although more tokens were accumulated and new capital entered the fund, these factors were not sufficient to overcome the broader downward trend in XRP’s market value.
