21Shares XRP ETF Reports 54.4% Decrease in Net Assets in Latest 10-Q Filing

21Shares XRP ETF has reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2026. The Trust's net assets decreased to $112.9 million, down 54.4% from $247.7 million at the end of the previous fiscal year. This decline was primarily driven by a 42.9% drop in the price of XRP, which fell from $1.8272 to $1.0431 during the same period. The Trust's investment in XRP, valued at $112.9 million, represents a significant reduction from its previous valuation of $247.7 million, reflecting a challenging market environment for digital assets.

In terms of operational metrics, the Trust experienced a decrease in shares outstanding, which fell from 13.9 million to 11.1 million. During the quarter, 480,000 shares were created while 220,000 shares were redeemed. The Trust's net investment loss for the quarter was reported at $104,899, with a total net decrease in net assets resulting from operations amounting to $32.9 million. This loss was attributed to a net change in unrealized depreciation on investments in XRP, which accounted for $31.1 million of the total loss.

Strategically, the Trust is transitioning its pricing benchmark provider from CF Benchmarks Ltd. to FTSE International Limited, effective August 31, 2026. This change is not expected to materially impact the Trust's net asset value or operational results. The Trust continues to operate under a unitary Sponsor Fee of 0.30% of its net asset value, a significant reduction from the previous fee of 2.50%. This fee structure is designed to cover the Trust's operational expenses, which the Sponsor has agreed to assume, excluding extraordinary expenses.

Looking ahead, the Trust's management has indicated that it does not foresee any immediate changes to its liquidity needs, as its primary recurring expense remains the Sponsor Fee. However, the Trust's performance is closely tied to the volatility of the XRP market, and management has acknowledged the inherent risks associated with this concentration. The Trust remains classified as an emerging growth company, allowing it to take advantage of certain reduced public company reporting requirements, which may provide operational flexibility as it navigates the current market landscape.