Canary Capital’s $XRP exchange traded fund ended the first half of 2026 with $81.6 million fewer net assets even after positive capital share activity added $82.4 million.
An Aug. 7 SEC filing shows that falling $XRP valuations more than offset the increase in shares during the six months through June 30.
The unaudited Form 10 Q puts XRPC’s net assets at $241.17 million on June 30, down from $322.82 million at the end of 2025. Meanwhile, outstanding shares increased from 16.49 million to 21.77 million as the fund created 5.65 million shares and redeemed 370,000. $XRP itself fell 43.27% from $1.84 to $1.04 over the same period.
Investors poured $82 million into Canary’s $XRP ETF, but falling prices erased double what they put in
One large allocation or the start of a broader bid? pic.twitter.com/z2cGvbw7hs
— Xora Finance (@xora_finance) August 10, 2026
Canary $XRP ETF added shares while $XRP erased value
The accounting behind the decline shows two forces moving in opposite directions. XRPC recorded $88.26 million from shares sold and $5.90 million from shares redeemed. The resulting $82.36 million increase from capital share transactions was outweighed by a $164 million decrease in net assets from operations.
Most of that operational decline came from $XRP rather than fees. The fund recorded $159.70 million in unrealized depreciation, $3.59 million in realized investment losses and $716,898 in sponsor fees during the six month period. Unrealized depreciation was therefore almost twice the value added through net capital share transactions.
The contrast follows an initially strong reception for the fund. As crypto.news reported in its launch day coverage, XRPC generated about $58 million in trading volume when it debuted on Nasdaq in November 2025, making it one of that year’s largest new ETF launches by first day volume.
The $82 million figure is not simply investor cash inflow
The $82.36 million increase should not be treated as $82.36 million of retail investors depositing cash into XRPC. Canary’s SEC prospectus allows authorized participants to create and redeem baskets using either cash or $XRP. Investors trading XRPC shares on Nasdaq do not directly create or redeem shares with the trust.
The latest filing shows the distinction clearly. XRPC purchased 34.13 million $XRP valued at $52.20 million during the first half, while another 25.93 million $XRP valued at $36.05 million entered the trust through in kind share creations. The fund also sold 3.93 million $XRP worth $5.90 million to meet redemptions and reported no $XRP distributed in kind for redemptions.
Accordingly, the filing supports describing the $82.36 million as net capital share activity rather than a direct measure of investor cash inflows. It does show that creation activity exceeded redemptions during the period.
XRPC held 31.7% more $XRP but the position was worth less
XRPC’s $XRP holdings increased from 175.63 million tokens at the beginning of 2026 to 231.28 million on June 30, a rise of about 31.7%. Yet the fair value of the $XRP position fell from $322.97 million to $241.28 million because the underlying asset declined sharply.
That disconnect has also appeared across the wider U.S. $XRP ETF market. In related ETF flow coverage, crypto.news reported in July that cumulative inflows across spot $XRP funds remained well above their combined net assets as falling token prices reduced portfolio values.
The price weakness does not mean creations stopped altogether. More recent fund flow reporting showed $XRP ETFs recording fresh net inflows on July 29 after a four day pause, while $XRP remained near the $1.10 area.
XRPC assets slipped further after the June quarter
Canary’s latest published fund data shows XRPC remained below its June level after the reporting period. Net assets stood at $237.38 million on Aug. 7, with both NAV and market price at $10.85. Shares outstanding had increased to 21.87 million from 21.77 million at June 30.
The same data puts XRPC’s NAV return at negative 43.93% for 2026 through Aug. 7, compared with negative 42.84% through June 30. Its market price return was negative 44.22% year to date. Those figures show that the valuation pressure documented in the SEC report had not fully reversed by early August.
For XRPC, the next financial filing will provide another formal snapshot of whether continued share creation can offset movements in $XRP’s price. The first half results already make the current dynamic clear: the trust accumulated substantially more $XRP, but the falling value of each token left the fund with fewer dollars in net assets.
