Key takeaways

  • 21Shares XRP ETF rebounds 42.6% during third quarter
  • Nine-month returns remain negative despite stronger XRP prices
  • Fund redemptions reduce holdings to 107.3 million XRP

The 21Shares XRP ETF (TOXR) reported an 18.73% loss in net asset value returns for the first nine months of 2026, despite rebounding 42.62% during the third quarter, according to a newly filed financial report.

The fund's November 10 SEC filing reveals that its assets declined to $159.7 million by September 30, from $247.7 million at the end of 2025. The decrease reflects both XRP's price performance and substantial investor redemptions.

XRP ETF Gains 42.6% in Q3 but Remains Down for 2026

TOXR's third-quarter recovery closely tracked XRP, which rose 42.72% from $1.0431 on June 30 to $1.4887 on September 30.

The ETF's NAV per share increased from $10.16 to $14.49, producing a 42.62% return after fund expenses.

However, the quarterly rebound was insufficient to reverse earlier losses. For the nine months ended September 30, XRP declined 18.53%, while TOXR's NAV return fell 18.73%.

The fund's August benchmark change also shifted valuation calculations to the FTSE XRP Index. According to the filing, that change had no material effect on its financial results.

21Shares XRP Holdings Fall as Investors Redeem 4.55M Shares

The SEC filing reveals another significant development: TOXR's XRP holdings declined from approximately 135.6 million tokens at the beginning of 2026 to 107.3 million by September 30.

During those nine months, investors redeemed 4.55 million ETF shares, representing $78.8 million in distributions. New share creations totaled only 1.68 million, bringing in $28.3 million.

This resulted in approximately $50.5 million in net redemption-related capital outflows over the period.

The disclosures provide additional context for recent XRP ETF withdrawals, which have persisted despite Ripple's expanding institutional partnerships.

TOXR's remaining XRP holdings carried an accounting cost of $223 million but were valued at $159.7 million at quarter-end, representing approximately $63.3 million in unrealized depreciation on those holdings.

That difference should not be confused with realized investor losses, since individual shareholders may have purchased or sold ETF shares at different prices.

What Do the Results Mean for XRP ETF Demand?

The latest report adds another perspective to the disconnect between XRP investment products and their market performance.

Earlier estimates suggested that XRP ETF investors were facing substantial unrealized losses despite approximately $1.8 billion in cumulative inflows across major US funds.

However, those estimates rely on reconstructed investor acquisition costs rather than issuer-reported shareholder returns.

The 21Shares filing provides a clearer measure of fund performance, confirming that its nine-month NAV return remained negative even after the third-quarter recovery.

The report also shows how institutional XRP demand can weaken without requiring a corresponding decline in secondary-market trading activity.

Meanwhile, recent ETF flow stagnation suggests the broader market continues to face challenges attracting new capital.

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Marcus Hale

Marcus Hale is a crypto and financial markets writer covering Bitcoin, Ethereum, digital assets, regulation, ETFs, and institutional adoption. His work focuses on market-moving developments, investor trends, and the broader forces shaping the crypto economy.

https://coinpaper.com/38720/xrp-etf-reports-18-7-loss-despite-42-6-quarterly-rally-21-shares-reveals-107-m-xrp-holdings

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