10-Q: Bitwise XRP ETF Q1 2026 Financial Results

The Bitwise XRP ETF reported a net decrease in assets of $91.7 million for Q1 2026, driven primarily by a decline in the market price of XRP.

Summary

• The Trust reported a net investment loss of $232,000 for the three months ended March 31, 2026.
• Net assets decreased from $241.4 million at year-end 2025 to $261.9 million at March 31, 2026, despite a significant decline in the price of XRP.
• The Trust experienced a net realized and unrealized loss of $91.5 million during the quarter.
• The Principal Market NAV per share fell from $20.46 at the end of 2025 to $15.03 as of March 31, 2026.
• The Trust issued 6,730,000 shares and redeemed 1,110,000 shares during the period.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral report; while the financial results show a significant decline in value, this is entirely expected given the market performance of the underlying asset, and the Trust continues to operate as intended.

Positives

• The Trust successfully grew its total XRP holdings from 131.2 million to 194.9 million tokens during the quarter.
• The Trust maintains a simple, transparent structure with no derivatives or leverage.
• The Sponsor continues to waive or absorb certain operating expenses, maintaining a consistent 0.34% annual Sponsor Fee.

Negatives

• The Trust recorded a net decrease in net assets resulting from operations of $91.7 million.
• The price of XRP, which serves as the Trust's sole asset, declined from $1.82 at year-end 2025 to $1.34 at March 31, 2026.
• The total return at net asset value for the quarter was negative 26.54%.

Risks

• Extreme volatility in the price of XRP directly impacts the value of the Shares.
• The Trust is subject to concentration risk as its sole asset is XRP.
• Regulatory changes or legal developments concerning digital assets could adversely affect the Trust.
• Potential for manipulative trading activity on crypto asset exchanges.

Future Outlook

The Trust does not provide specific financial guidance but notes that it will continue to hold XRP as its sole asset and that future performance remains entirely dependent on the market price of XRP and the Trust's ability to manage expenses.

Management Comments

• Management notes that the Trust's performance is directly tied to the volatility of the digital asset markets.
• The Sponsor emphasizes that the Trust is designed to provide efficient market exposure to XRP without the complexities of direct ownership.

Industry Context

StockSavvy.ai notes that this filing reflects the broader volatility inherent in crypto-asset ETPs. As a single-asset trust, the performance is a direct proxy for the underlying asset's market movement, consistent with other spot crypto ETFs in the current regulatory environment.

Comparison to Industry Standards

• The 0.34% Sponsor Fee is competitive with other spot digital asset ETFs currently trading on U.S. exchanges.
• The use of Lukka, Inc. for valuation and Coinbase Custody for asset safekeeping aligns with industry best practices for institutional-grade crypto products.

Legal Proceedings

• None disclosed.

Related Party Transactions

• The Trust pays a 0.34% annual Sponsor Fee to Bitwise Investment Advisers, LLC.
• The Sponsor is a wholly-owned subsidiary of Bitwise Asset Management, Inc.

Stakeholder Impact

• Shareholders are directly exposed to the price volatility of XRP.
• The Trust provides a regulated vehicle for institutional and retail investors to gain exposure to XRP.

Next Steps

• Continue daily NAV calculations and reporting.
• Ongoing management of XRP holdings and Sponsor Fee accruals.
• Continued compliance with SEC reporting requirements for emerging growth companies.

Key Dates

Keywords

XRP, ETF, Bitwise, Cryptocurrency, Digital Assets, Exchange Traded Product