Fees, Structure Could Make XRPR Diverge From XRP

On Aug. 24 XRPR allocated 40.25% of its assets to the CoinShares Physical XRP ETP, routing about $22.87 million of a $56.68 million portfolio into the listed product. XRPR’s holdings snapshot for that date shows 59.74% of the portfolio as direct XRP exposure, 4.7 million XRPR shares outstanding, a net asset value of $12.09 and a closing price of $12.06.

The fund’s prospectus dated June 30 states the fund seeks to keep at least 80% of assets in XRP and instruments that provide XRP exposure and to invest at least 40% in securities such as ETFs and non‑U.S. exchange‑traded products. At 40.25%, the CoinShares position sits just above that 40% securities floor. XRPR’s filings also consolidate a Cayman subsidiary used for XRP exposure, so the snapshot does not necessarily reflect direct ownership of every token on the balance sheet.

XRPR discloses a 0.75% annual operating expense ratio. CoinShares lists a 1.50% annual fee for its Physical XRP ETP. Applying the 1.50% fee to the 40.25% weight on Aug. 24 produces an estimated 0.60375 percentage‑point annual drag inside XRPR before changes in allocation, prices or other expenses. The fund’s statement of additional information notes that shareholders indirectly bear acquired‑vehicle fees in addition to the fund’s own expenses, and the underlying product’s charge is reflected in the ETP’s market value.

The CoinShares product is Jersey‑domiciled and listed on European exchanges. Differences in trading hours, bid‑ask spreads, market depth and settlement mechanics compared with U.S. venues can affect XRPR when the fund rebalances, creates or redeems shares, or trades exposure while the underlying venue is less liquid or operating on different hours. Those execution factors add issuer, custody and trading‑venue links between XRPR and the tokens that back the ETP.

CoinShares reported $168.75 million of product assets as of Aug. 21. The XRPR holdings snapshot does not display the ETP’s current bid‑ask spread, depth or recent execution prices, so the precise cost of maintaining the position will vary over time. As allocation weights and accounting treatments change, XRPR’s net asset value will reflect the fund’s operating expenses plus any fees and market frictions embedded in the acquired ETP sleeve.