10-Q: Bitwise XRP ETF Reports Q2 2026 Results Amidst XRP Price Decline

The Bitwise XRP ETF reported a net decrease in net assets resulting from operations of $84,915 thousand for the three months ended June 30, 2026, primarily due to unrealized losses on its XRP holdings.

Summary

• The Bitwise XRP ETF experienced a net decrease in net assets of $84,915 thousand for the three months ended June 30, 2026, and $176,613 thousand for the six months ended June 30, 2026.
• This decrease was largely driven by net realized and unrealized losses on investments in XRP, amounting to $84,653 thousand for the three-month period and $176,119 thousand for the six-month period.
• The Net Asset Value (NAV) per Share decreased from $20.46 at the beginning of the six-month period (December 31, 2025) to $11.66 at the end (June 30, 2026).
• Despite operational losses, net assets increased by $37,291 thousand in the three-month period and $57,777 thousand in the six-month period due to significant capital share transactions (creations).
• The Trust holds 286,838,445.9126 XRP as of June 30, 2026, valued at $299,230 thousand.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to significant unrealized losses and a substantial decrease in NAV per share, despite an increase in net assets from capital share transactions.

Positives

• Net assets increased by $37,291 thousand in the three months ended June 30, 2026, and $57,777 thousand in the six months ended June 30, 2026, primarily due to substantial capital share creations.
• The Trust successfully managed share creations, adding approximately 105,315,793 XRP ($137,916 thousand) in the three-month period and 181,530,188 XRP ($269,854 thousand) in the six-month period.
• The Sponsor continues to cover ordinary operating expenses beyond the Sponsor Fee, including trustee fees, service provider fees, and up to $500,000 annually in ordinary legal fees.

Negatives

• The Trust incurred a net realized and unrealized loss on investments in XRP of $84,653 thousand for the three months ended June 30, 2026, and $176,119 thousand for the six months ended June 30, 2026.
• The Net Asset Value (NAV) per Share significantly decreased from $20.46 on December 31, 2025, to $11.66 on June 30, 2026, representing a total return of -43.01% for the six-month period.
• The Trust experienced a net investment loss of $262 thousand for the three months and $494 thousand for the six months ended June 30, 2026.
• The value of the Trust's XRP holdings decreased from $239,758 thousand on December 31, 2025, to $299,230 thousand on June 30, 2026, despite an increase in the quantity of XRP held, indicating a significant price depreciation.

Risks

• Substantially all of the Trust's assets are holdings of XRP, creating a concentration risk associated with fluctuations in the price of XRP.
• Extreme volatility in XRP trading prices could have a material adverse effect on the value of the Shares, potentially leading to a loss of all or substantially all of their value.
• Factors adversely impacting XRP value include increased global XRP supply or decreased demand, market sentiment towards crypto assets, and potential manipulation on unregulated exchanges.
• Changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies could negatively affect the Trust.

Future Outlook

The Trust's primary investment objective is to seek to provide exposure to the value of XRP held by the Trust, less the expenses of the Trust's operations. The Sponsor expects the Trust to have an immaterial amount of cash flow from operations and an insignificant cash balance at the end of each reporting period. The Trust will not borrow to meet liquidity needs.

Management Comments

• The Sponsor believes that the design of the Trust will enable certain investors to more effectively and efficiently implement strategic and tactical asset allocation strategies that use XRP by investing in the Shares rather than purchasing, holding and trading XRP directly.
• The Sponsor has agreed to pay all operating expenses (except for litigation expenses and other extraordinary expenses) out of the Sponsor's unified management fee.
• The Sponsor has elected not to use the extended transition period for complying with new or revised accounting standards, and will comply with such standards on the relevant dates required for non-emerging growth companies.

Industry Context

StockSavvy.ai notes that the performance of the Bitwise XRP ETF is directly tied to the price volatility of XRP, a digital asset that has experienced significant price swings. The ETF's structure, aiming to provide exposure without direct holding risks, is common in the digital asset ETF space, but its performance is inherently linked to the underlying asset's market dynamics and regulatory landscape.

Comparison to Industry Standards

• The Trust is an emerging growth company and can comply with reduced reporting requirements.
• The Trust's expense ratio is 0.34%, which is competitive for digital asset ETFs, though direct comparisons are difficult due to the unique nature of digital assets.
• The NAV per share has seen a significant decline (-43.01% over six months), which is considerably worse than traditional ETFs tracking more stable assets, but may be in line with other digital asset-focused funds experiencing market downturns.

Legal Proceedings

• None reported.

Related Party Transactions

• The Trust pays a Sponsor Fee of 0.34% per annum to Bitwise Investment Advisers, LLC (the Sponsor).
• The Sponsor waived the entire Sponsor Fee on the first $500 million of Trust assets from November 20, 2025, through December 19, 2025.
• Bitwise Asset Management, Inc. (parent of the Sponsor) purchased initial 'Seed Shares' on October 10, 2025.
• Bitwise Investment Manager, LLC (affiliate of the Sponsor) purchased initial 'Seed Baskets' on November 19, 2025.

Stakeholder Impact

• Shareholders have experienced a significant decrease in the Net Asset Value per Share, impacting their investment value.
• The concentration risk in XRP means that any adverse movement in XRP's price directly impacts shareholder value.
• The Sponsor continues to cover ordinary operating expenses, which benefits shareholders by reducing the overall cost burden on the Trust.

Next Steps

• The Trust will continue to seek to provide exposure to the value of XRP.
• The Sponsor will continue to oversee service providers and manage the Trust.
• The Trust will continue to comply with new or revised accounting standards as required for non-emerging growth companies.

Key Dates

Recommendation

The filing indicates significant unrealized losses and a substantial decrease in NAV per share, reflecting the volatility of XRP. While capital creations show investor interest, the negative performance and inherent risks of digital assets warrant a cautious 'hold' approach. Investors should monitor XRP's price action and regulatory developments closely.

Keywords

XRP ETF, Digital Asset, Cryptocurrency, Exchange Traded Product, Bitwise, NAV, Sponsor Fee, SEC Filing