XRP ETF Gains Tokens But Loses $82M as Price Crash Wipes Out Inflows

Woofun AI reports that Canary Capital's Canary XRP ETF (XRPC) concluded the first half of 2026 with a net assets decline of $81.6 million, a paradox driven by capital-share transactions adding $82.4 million while unrealized XRP depreciation erased the gains.

The accounting bridge reveals that capital-share transactions increased net assets by $82.36 million, yet operational decreases totaling $164.00 million resulted in the $81.65 million drop over the six months.

Woofun AI data shows that $159.70 million of this operational decrease stemmed from unrealized depreciation, with the remainder comprising $3.59 million in realized losses and a $716,898 net investment loss. These unaudited figures cover the full six months, not just the second quarter, indicating that redemptions did not outpace new share activity.

Structurally, the accounting decrease from operations was nearly double the value added through capital transactions, with unrealized XRP depreciation dominating the loss profile rather than fees or realized losses.

Notably, the fund's holdings expanded to 231.3 million XRP by June 30, an increase of 55.7 million XRP, or 31.7%, from the 175.6 million held at the end of 2025. This volume growth occurred alongside a sale of 3.93 million XRP to fund share redemptions during the first half, which recorded a $3.26 million realized loss. This loss reflects the fund's accounting position, not the losses realized by individual XRPC shareholders. The divergence between token quantity and dollar value highlights how rising holdings can coexist with significant portfolio devaluation.

The filing captures two simultaneous movements: net capital-share activity and XRP units both increased, while depreciation cut the value of the larger token pool. Consequently, the fund holds more XRP but faces an $81.6 million reduction in net assets at midyear. This marks a clear instance where asset price volatility completely negated investor inflow momentum.