Bitwise XRP ETF

What they do

The Trust holds XRP as its only digital asset and seeks to provide exposure to the value of XRP held by the Trust, less expenses and other liabilities. Shares are created and redeemed in-kind for XRP or for cash. Coinbase Custody Trust Company, LLC serves as custodian, holding XRP in segregated Trust XRP Accounts. Net asset value is calculated daily by reference to the CME CF XRP Dollar Reference Rate New York Variant.

Revenue drivers

• XRP price exposure — The Trust's returns are driven almost entirely by changes in the value of the XRP it holds; the 10-K states the Trust is passively managed, does not use leverage, and XRP is the only digital asset held.
• Sponsor Fee accrual — The Trust accrues the Sponsor's management fee in U.S. dollars, which is a cost to the Trust rather than a revenue line; the filing text does not disclose the fee rate or amount.
• Share creation and redemption activity — The Trust may create and redeem Shares in-kind for XRP or for cash, which changes the size of the Trust but is not described as generating revenue.

Recent performance

For the three months ended June 30, 2026, the Trust reported a net investment loss of $262 thousand and net realized and unrealized loss of $84,653 thousand. For the six months ended June 30, 2026, the net investment loss was $494 thousand and net realized and unrealized loss was $176,119 thousand. As of June 30, 2026, total assets were $305.0 million and total liabilities were $5.9 million. The results reflect a period of negative XRP price movement relative to the Trust's holdings.

Strategy

The Trust's stated objective is to provide exposure to the value of XRP held by the Trust, less expenses of operations. It is passively managed, does not pursue active strategies, does not sell XRP at highs or buy at lows, and does not use hedging techniques or leverage. The Trust will not use derivatives that could add counterparty and credit risks. It offers investors access to XRP through a traditional brokerage account rather than acquiring and holding XRP directly.

Risks

• XRP securities-law classification — The 10-K states the SEC previously alleged XRP is a security in its December 2020 complaint against Ripple Labs and two executives in the S.D.N.Y., and a determination that XRP is a security could adversely affect its price and the value of the Shares.
• Custody concentration at Coinbase Custody — Coinbase Custody Trust Company, LLC holds all of the Trust's XRP, and the filing states the custodian is not FDIC-insured but carries private insurance.
• Passive, unhedged XRP price exposure — The Trust is passively managed, does not hedge, and does not use leverage, so declines in XRP's price flow directly through to the Trust's net assets and Share value.
• Pricing benchmark dependence — NAV is set daily by reference to the CME CF XRP Dollar Reference Rate New York Variant, calculated by CF Benchmarks Ltd. from executed trade flow on major XRP trading platforms, so benchmark accuracy and constituent platform trading activity affect reported valuation.

Outlook

The filing excerpts do not include management guidance on future results beyond the Trust's stated objective of providing exposure to the value of XRP held by the Trust, less expenses of operations. The Trust expects to continue to be passively managed and to hold XRP as its only digital asset. No forward-looking targets, distribution plans, or fee changes are disclosed in the provided excerpts.