Canary Capital’s Canary XRP ETF (XRPC) ended the primary half of 2026 with $81.6 million much less in web belongings even after capital-share transactions added a web $82.4 million, displaying how falling asset values can overwhelm progress in an exchange-traded fund.
The fund’s unaudited Type 10-Q, filed Aug. 7, confirmed web belongings declining from $322.8 million at Dec. 31, 2025, to $241.2 million at June 30, 2026.
The accounting bridge is direct: capital-share transactions elevated web belongings by $82.36 million, however the accounting lower from operations, primarily unrealized XRP depreciation, decreased them by $164.00 million. The distinction was the $81.65 million decline in web belongings over the six-month interval.
XRPC attributed $88.26 million to shares offered and $5.90 million to shares redeemed. As a result of approved individuals place XRPC’s creation and redemption orders and might settle them in money or in form, the $82.36 million is just not equal to money influx and doesn’t instantly measure retail-investor shopping for. The submitting doesn’t disclose the interval’s cash-versus-in-kind cut up.
Unrealized depreciation overwhelmed web share exercise
Unrealized depreciation accounted for $159.70 million of the $164.00 million lower from operations. The stability comprised $3.59 million of realized losses and a $716,898 web funding loss. All are unaudited figures for the total six months, not the second quarter alone.
The fund’s redemptions due to this fact didn’t exceed its new share exercise. Internet capital-share exercise remained optimistic, however the accounting lower from operations was practically twice as giant as the worth added via capital transactions. Unrealized XRP depreciation, slightly than charges or realized losses, dominated that lower.
The distinction is clearest in XRPC’s holdings. The belief held 231.3 million XRP at June 30, up 55.7 million XRP, or 31.7%, from 175.6 million on the finish of 2025. The amount of XRP rose whereas unrealized depreciation decreased the greenback worth acknowledged within the portfolio.
The fund additionally offered 3.93 million XRP to fund share redemptions in the course of the first half, recording a $3.26 million realized loss on these gross sales. That was a loss acknowledged by the fund, not a measure of losses realized by particular person XRPC shareholders.
XRPC’s submitting captures two simultaneous actions: web capital-share exercise and XRP models each elevated, whereas depreciation minimize the worth of the bigger token pool. The outcome was a fund with extra XRP however $81.6 million much less in web belongings at midyear.