Key Takeaways:
Canary's XRP ETF lost $81.6 million in net assets in H1 2026 even as capital-share activity added $82.4 million.
The fund's unaudited Form 10-Q, filed with the SEC on Aug. 7, showed net assets declining from $322.8 million at Dec. 31, 2025, to $241.2 million at June 30, 2026.
Capital-share transactions increased net assets by $82.36 million, but the accounting decrease from operations — primarily unrealized XRP depreciation of $159.70 million — reduced them by $164.00 million. The fund attributed $88.26 million to shares sold and $5.90 million to shares redeemed.
The trust held 231.3 million XRP at June 30, up 31.7 percent from 175.6 million at end-2025, yet the larger token pool was worth less in dollars. XRP trades at $1.03, down 30 percent over the past 90 days, and the divergence between investor demand and price-driven losses could persist if XRP fails to reclaim higher levels.
Because authorized participants place XRPC's creation and redemption orders and can settle them in cash or in kind, the $82.36 million is not equivalent to cash inflow and does not directly measure retail-investor buying. The filing does not disclose the period's cash-versus-in-kind split.
Unrealized depreciation accounted for $159.70 million of the $164.00 million decrease from operations. The balance comprised $3.59 million of realized losses and a $716,898 net investment loss. All are unaudited figures for the full six months, not the second quarter alone.
The fund's redemptions did not exceed its new share activity. Net capital-share activity remained positive, but the accounting decrease from operations was nearly twice as large as the value added through capital transactions. Unrealized XRP depreciation, rather than fees or realized losses, dominated that decrease.
The fund also sold 3.93 million XRP to fund share redemptions during the first half, recording a $3.26 million realized loss on those sales. That was a loss recognized by the fund, not a measure of losses realized by individual XRPC shareholders.
XRPC's filing captures two simultaneous movements: net capital-share activity and XRP units both increased, while depreciation cut the value of the larger token pool. The result was a fund with more XRP but $81.6 million less in net assets at midyear.
The pattern extends beyond Canary. Grayscale's XRP fund has also seen market losses wipe out investor inflows, with a $165 million six-month bleed from mass exits and market crashes. XRP's 90-day decline of 30 percent has pressured all XRP-linked products on the XRP Ledger, even as institutional interest in the token's ETF wrappers persists. The total crypto market stands at $2.21 trillion with Bitcoin dominance at 58.90 percent, and XRP's continued slide suggests the token's ETF demand has yet to translate into price support.
This article is for informational purposes only and does not constitute investment advice.
