Canary XRP ETF Annual Report: A Simple Guide

I’m writing this guide to help you understand how the Canary XRP ETF (ticker: XRPC) performed. My goal is to turn complex filing details into clear information so you can decide if this fund fits your goals.

1. The Big Picture: What is this ETF?

Think of the Canary XRP ETF as a digital vault for XRP. Instead of buying, storing, and securing XRP yourself, you buy shares of this ETF through your regular brokerage account. The fund’s only job is to hold XRP and track its price. As of March 2026, the fund held 4.6 million XRP, backing 18.41 million shares. With XRP priced at $2.70, the fund’s total value was about $12.4 million.

2. How the "Engine" Works

The XRP Ledger is fast and energy-efficient. All 100 billion XRP tokens were created in 2012. To keep the market stable, Ripple Labs holds a large portion in "escrow," releasing them in controlled, monthly batches—usually 1 billion tokens—to prevent a sudden flood of supply from crashing the price. The ETF’s performance is tied to the market value of the XRP held within the trust.

3. Financial Health & Security

The fund launched on November 12, 2025.

• How your shares are valued: The fund calculates its "Net Asset Value" (NAV) daily. This is the total value of the XRP held, minus any bills, divided by the number of shares. To stay transparent, the fund shows an "Indicative Trust Value" (ITV) every 15 seconds. This acts like a live price tag so you can see if your shares are priced fairly.
• Who pays the bills? The Sponsor covers almost all daily costs, including the 0.50% annual fee, legal, and marketing expenses. You won't see these as hidden fees taken from your investment. If "Extraordinary Expenses" arise—like emergency security audits over $50,000—the fund may sell some XRP to cover them, which would slightly reduce the amount of XRP backing each share.
• Safety: The fund uses Coinbase Custody and BitGo to store XRP in "cold storage" (offline). Your assets sit in separate accounts, so they aren't mixed with the custodians' own money. The custodians carry a $100 million insurance policy against theft or security breaches.

4. The Risks: What could go wrong?

• Crypto Volatility: Your investment value moves with the price of XRP. Since launch, XRP has seen daily price swings of up to 8%, which directly affects your share price.
• Price Gaps: The fund tries to keep share prices close to the actual value of the XRP. Sometimes, these prices drift apart. If your shares trade at a price more than 1.5% away from the NAV for a long time, it may signal a market issue.
• Extraordinary Costs: Major, unexpected expenses force the fund to sell some XRP, which reduces the XRP backing each share.
• The "Fork" Risk: If the XRP network splits, the custodians choose which version to support. You aren't guaranteed to receive any "new" coins from a split. The fund may sell any "forked" assets and keep the cash.

5. What’s Next?

The fund is in a growth phase. Management is focused on its Nasdaq listing and vault security. They are also watching for XRP Ledger updates, like new lending protocols, which could change how the network is used. The Sponsor is also exploring whether to add staking rewards if the XRP Ledger protocol eventually supports them.

Final Thought for Investors: When considering this ETF, look closely at the "Indicative Trust Value" (ITV) during trading hours to ensure you are buying shares at a price that reflects the actual value of the XRP held in the vault. Because this is a new fund, keep an eye on how the share price tracks against the daily NAV to ensure the fund is operating efficiently.