Canary XRP ETF loses $82 million as XRP price decline erases investment gains

Canary Capital’s XRP ETF saw more than $82 million in net capital added during the first half of 2026, but falling XRP prices pushed the fund’s net assets down by $81.6 million.

The Canary XRP ETF (XRPC) increased its XRP holdings during the period, yet the value of those holdings fell sharply because of XRP’s price decline. The fund’s latest filing shows how falling crypto prices can outweigh new investment into an ETF.

XRP Price Decline Cuts Canary XRP ETF Assets

According to Canary Capital’s unaudited Form 10-Q filed with the US Securities and Exchange Commission (SEC) on August 7, XRPC’s net assets fell from $322.8 million on December 31, 2025, to $241.2 million on June 30, 2026.

That represents a decline of about $81.6 million over six months. However, the fund actually recorded positive net capital-share activity during the same period.

Capital-share transactions added approximately $82.36 million to the fund. At the same time, the fund recorded a $164 million decrease from operations, mainly because of unrealized losses from the decline in XRP’s value.

In simple terms, investors added money to the fund, but the fall in XRP’s price caused a much larger decline in the value of the ETF's assets.

The filing reported:

• $82.36 million: Net increase from capital-share transactions
• $164 million: Decrease from operations
• $159.70 million: Unrealized XRP depreciation
• $3.59 million: Realized losses
• $716,898: Net investment loss
• $81.65 million: Overall decline in net assets

XRPC Added More XRP Despite Falling Asset Value

One of the most interesting details in the filing is that the ETF actually increased the amount of XRP it held.

XRPC held approximately 231.3 million XRP on June 30, compared with 175.6 million XRP at the end of 2025. That represents an increase of about 55.7 million XRP, or 31.7%.

However, holding more XRP did not translate into a higher dollar value for the fund because XRP prices declined during the period.

This means XRPC ended the first half of 2026 with more XRP but fewer total assets in dollar terms. The situation highlights the difference between the amount of an asset an ETF holds and the market value of those holdings.

XRP Depreciation Was the Biggest Drag on XRPC

Unrealized XRP depreciation was responsible for most of the fund's decline from operations.

The fund reported approximately $159.7 million in unrealized depreciation, compared with only $3.59 million in realized losses.

An unrealized loss occurs when the value of an asset falls but the fund has not sold that asset. Therefore, the loss reflects the lower market value of XRPC's XRP holdings rather than a complete cash loss from selling XRP.

The filing also shows that XRPC sold around 3.93 million XRP to fund share redemptions during the first half of the year. Those sales resulted in a realized loss of approximately $3.26 million.

However, this loss should not be interpreted as the amount individual XRPC investors lost. It was the loss recorded by the fund on those specific XRP sales.

$82 Million in Net Share Activity Does Not Mean $82 Million in Retail Buying

Another important point is how ETF share activity is calculated.

XRPC reported approximately $88.26 million from shares sold and $5.90 million from shares redeemed, resulting in $82.36 million in net capital-share activity.

However, this figure does not necessarily mean that retail investors put $82.36 million in cash into the ETF.

Authorized participants can create and redeem ETF shares using cash or assets such as XRP, depending on the transaction structure.

As a result, the filing's net capital-share figure should not be treated as a direct measure of retail investor demand.

Instead, it shows the net accounting impact of share creation and redemption activity during the period.

More XRP, But Lower ETF Value

The first-half results show two very different trends happening at the same time.

XRPC increased its XRP holdings by nearly 32%, while its total net assets declined by about $81.6 million.

The main reason was the drop in XRP's market value.

This also shows why ETF inflows alone do not guarantee that an XRP ETF's assets under management will increase. If the underlying asset falls sharply enough, price depreciation can outweigh new capital entering the fund.

For XRPC, the first half of 2026 was therefore a clear example of how XRP price performance can have a much larger impact on ETF assets than net share activity.

Related: The relationship between XRP's price performance and investor demand also connects with our recent coverage of XRP's broader market performance. In XRP price struggles despite ETF inflows as crypto market recovers, we looked at why XRP continued to lag despite continued ETF inflows.