21shares XRP ETF

What they do

The Trust issues common shares of beneficial interest that trade on the Cboe BZX Exchange. It holds XRP with custodians (Coinbase Custody, BitGo, and Anchorage) and uses cash creations and redemptions in blocks of 10,000 shares. The Trust is not an investment company and does not engage in staking or hold futures contracts. It is managed by 21Shares US LLC, a wholly owned subsidiary of 21co Holdings Limited, ultimately owned by FalconX.

Revenue drivers

• Sponsor Fee — The Trust pays a unitary Sponsor Fee of 0.30% of NAV (reduced from 2.50% prior to December 11, 2025) to the Sponsor, which covers all operating expenses except litigation and extraordinary costs. This fee is the Trust's only source of revenue.
• Creation and Redemption Activity — The Trust issues and redeems shares only in Creation Baskets of 10,000 shares against cash or XRP. This activity drives the size of the Trust's asset base, which directly influences the Sponsor Fee.
• XRP Price Appreciation — The Trust's NAV and portfolio value depend entirely on the market price of XRP as measured by the Pricing Benchmark. Gains in XRP increase total assets under management, thereby increasing Sponsor Fee revenue.

Recent performance

For fiscal year 2025, the Trust reported a net loss of $36.0 million. As of June 30, 2026, total assets were $112.9 million, total liabilities were $5,629, and shareholder equity was $112.9 million. The Trust launched with seed capital: on December 20, 2024, the Sponsor purchased 10,000,000 shares at $22.07 per share (total proceeds $220.7 million); on December 10, 2025, the Sponsor purchased 20,000 seed creation shares at $20.33 per share (total proceeds $406,600).

Strategy

The Trust operates as a passive vehicle, holding XRP and tracking the pricing benchmark, with no active management or staking. It uses multiple custodians to secure XRP and has engaged a prime broker (Coinbase) for transactions. Management has not indicated plans to expand beyond the current single-asset structure. The Trust is focused on maintaining operational efficiency, recently negotiating a reduction in the Sponsor Fee and planning a change in the benchmark provider.

Risks

• XRP price volatility — The value of the Shares is directly tied to XRP, which is highly volatile and could lose all or substantially all of its value.
• Regulatory uncertainty — If XRP or another digital asset is deemed a security, it could adversely affect XRP's price and the Trust's value, potentially leading to extraordinary expenses or termination.
• Concentration risk — A significant portion of XRP is held by Ripple Labs and early stakeholders, whose actions could negatively impact the market price.
• Cash creation/redemption risk — The use of cash, rather than in-kind, creations and redemptions may impair arbitrage by Authorized Participants, causing the share price to diverge from NAV.

Outlook

Management plans to terminate the licensing agreement with the current benchmark provider (CF Benchmarks) effective August 31, 2026, and enter a new licensing agreement with FTSE on approximately August 24, 2026; this change is not expected to materially affect NAV or operations. The Sponsor Fee reduction to 0.30% is intended to lower costs for investors. The Trust faces competition from other XRP ETPs and there is no assurance it will achieve or maintain an economically viable size.