Canary Capital’s XRP exchange-traded fund finished the first half of 2026 with lower net assets even though capital share activity was positive during the period. An unaudited Form 10-Q shows the fund held $241.17 million in net assets on June 30, down from $322.82 million at the end of 2025.
The decline came as losses tied to XRP’s falling price outweighed additions from creations and other share-related activity. According to the filing, net capital share transactions added $82.36 million, but total operations reduced assets by $164.0 million, with unrealized depreciation in XRP accounting for $159.7 million of that drop.
Price decline outweighed asset growth
Canary’s data shows XRPC posted a 42.84% net asset value loss for the first six months of 2026. Over the same stretch, XRP fell 43.27%, from $1.84 to $1.04, helping explain why the trust’s dollar value fell even as it accumulated more tokens.
The fund’s XRP holdings rose from 175.63 million at the start of the year to 231.28 million by June 30, an increase of about 31.7%. But the fair value of that position still dropped from $322.97 million to $241.28 million because each token was worth far less by the end of the period.
What the $82.36 million figure represents
The increase tied to capital share transactions should not be read as a direct measure of cash deposited by ordinary investors into the ETF. Canary’s SEC prospectus allows authorized participants to create and redeem baskets using either cash or XRP, while investors who buy and sell XRPC on Nasdaq do not create or redeem shares directly with the trust.
The filing therefore supports describing the figure as net capital share activity rather than a simple tally of investor inflows. During the first half, the trust bought 34.13 million XRP valued at $52.20 million, and another 25.93 million XRP valued at $36.05 million entered through in-kind share creations.
To meet redemptions, the fund sold 3.93 million XRP worth $5.90 million. It reported no XRP distributed in kind for redemptions during the period.
Shares outstanding continued to rise
The number of outstanding XRPC shares increased from 16.49 million at the end of 2025 to 21.77 million on June 30. That change reflected the creation of 5.65 million shares and the redemption of 370,000 shares.
Those increases show that share creation continued despite the weakness in XRP’s price. Even so, the additional shares and larger token holdings were not enough to offset the impact of the underlying asset’s decline on the fund’s net assets.
Latest published data remained below June levels
More recent reporting cited in the source article said XRP ETFs recorded fresh net inflows on July 29 after a four-day pause, with XRP trading near the $1.10 area. But Canary’s own published fund data indicated XRPC was still below its June 30 asset level by early August.
As of Aug. 7, net assets stood at $237.38 million, compared with $241.17 million at the end of June. Shares outstanding had edged up again to 21.87 million from 21.77 million, while both NAV and market price were listed at $10.85.
The same data put XRPC’s NAV return for 2026 at negative 43.93% through Aug. 7, versus negative 42.84% through June 30. Its market price return for the year to date was negative 44.22%, suggesting the valuation pressure seen in the midyear filing had not fully reversed.
Next filing will show whether creations can offset price moves
The first-half results point to a clear pattern: the trust added substantially more XRP and expanded its share count, but falling XRP prices left the ETF with fewer dollars in net assets. That dynamic remained visible in the early-August fund data.
The next formal financial filing is expected to provide a clearer update on whether continued share creation and asset accumulation are enough to counter further moves in XRP’s market price.
Source: crypto.news