XRP ETF Loses $81.6 Million Despite $82.4 Million in Capital Flows

Canary Capital’s Canary XRP ETF (XRPC) concluded the first half of 2026 with net assets $81.6 million lower than at the start of the period, despite capital-share transactions injecting a net $82.4 million. This underscores how asset value declines can negate inflows in exchange-traded funds.

According to the fund’s unaudited Form 10-Q filed on August 7, net assets fell from $322.8 million as of December 31, 2025, to $241.2 million by June 30, 2026. The math is straightforward: capital-share activity added $82.36 million, but operations—driven primarily by unrealized XRP depreciation—subtracted $164.00 million. The net result was an $81.65 million decline in assets over six months.

The $82.36 million in net capital activity includes $88.26 million from share creations and $5.90 million from redemptions. Since authorized participants may settle transactions in cash or kind, this figure does not directly reflect retail buying power, and the filing omits the cash-versus-in-kind breakdown.

Unrealized Depreciation Outpaces Share Activity

Unrealized losses accounted for $159.70 million of the $164.00 million operations deficit, with the remainder comprising $3.59 million in realized losses and a $716,898 net investment loss. These figures represent six-month totals, not Q2 alone. While the XRP quantity grew from 175.6 million to 231.3 million (a 31.7% increase), plummeting asset values eroded dollarized holdings.

The fund’s redemptions did not exceed new share activity, leaving net capital activity positive. However, unrealized XRP depreciation nearly doubled the value added through capital transactions, demonstrating how price declines can overshadow structural growth.

During the period, the fund sold 3.93 million XRP to cover redemptions, incurring a $3.26 million realized loss—a bookkeeping item distinct from shareholder earnings. The portfolio concluded with 231.3 million XRP tokens, yet its dollar value sank by $81.6 million despite the expanded holdings.

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