Canary XRP ETF (XRPC) — Spot Structure, Performance and 12-Month Catalysts

Company Canary XRP ETF (XRPC) offers direct spot exposure to XRP, avoiding the structural drags that plague futures- and leverage-based products. Because the trust holds XRP directly, investors gain exposure that more closely tracks the underlying asset's spot price, with only the Trust's fees and operating expenses subtracting from returns. This structural clarity is a central consideration for long-term investors seeking a plain-vanilla route to XRP via conventional brokerage accounts.

Fund mechanics and valuation alignment: The trust calculates net asset value (NAV) once per trading day using the Company CME XRP-USD Reference Rate, and it publishes an intraday indicative value via Company CoinDesk Indices. These mechanisms help keep market price and NAV aligned, although temporary premiums and discounts can occur during periods of heightened volatility. The absence of futures roll costs, daily resets, and leverage-related decay means XRPC's performance should reflect XRP's spot moves more faithfully than derivative-based alternatives, after fees.

Peer comparison and performance implications: Compared with futures-based funds such as Company XRPI (futures) and leveraged ETFs like XRPT and XXRP, XRPC avoids roll and reset inefficiencies. Data from Company YCharts indicates that in the early trading window XRPC outperformed some futures and leveraged peers on a 1-month basis, illustrating the real-world impact of structural design on returns. Leveraged funds may outperform during short windows, but their resetting mechanics make them unsuitable for multi-month holds.

Costs, liquidity, and early adoption: With a net expense ratio of 0.50% and an early bid/ask spread that is competitive with ETF medians (approximately 0.15%), XRPC has demonstrated reasonable trading efficiency since launch. According to aggregated reporting by Company Seeking Alpha, XRPC also captured early assets quickly, accumulating significant AUM relative to other spot XRP ETFs, a possible sign of investor preference for early liquidity and availability over fee minimization in this nascent category.

Three 12-month catalysts to watch: 1) Post-launch flows, fee compression and liquidity share — competition among spot XRP ETFs (including funds from Company Bitwise, Company Franklin and Company Grayscale) will shape which product becomes the dominant, lowest-friction way to access XRP in brokerages; 2) Institutional-grade upgrades to the XRPL — enhancements that enable identity verification, compliance and permissions make the ledger more attractive to banks, custodians and tokenization providers; see Company XRP Ledger reports for Q3 2025 for details; 3) Expansion of stablecoins and tokenized assets on the XRPL, which could deepen on-ledger liquidity and use-cases, supporting demand for XRP over time.

Key risks: The primary risk is XRP price volatility — XRPC directly inherits XRP's upside and downside. Additional risks include a short public trading history for the trust, temporary premiums/discounts to NAV, tracking differences arising from timing and intraday market conditions, and potential future regulatory shifts despite recent clarifications. Timing risk for adoption-related catalysts also remains material.

Investment takeaway: For investors seeking a straightforward, long-term ETF wrapper to access XRP without the roll costs and structural decay associated with derivatives, Company Canary XRP ETF (XRPC) represents a compelling option. Its spot structure, early AUM growth, stabilizing liquidity and transparent NAV mechanics position it well among early spot XRP ETFs. Nevertheless, investors should weigh XRPC's benefits against the concentrated exposure to XRP and the fund's limited operating history.