Franklin Templeton’s First Quarterly Report of XRP ETF (XRPZ): Performance and Key Highlights

The Franklin Templeton Franklin XRP ETF (NYSE Arca: XRPZ) is a spot XRP exchange-traded product launched on November 24, 2025. It provides regulated exposure to XRP, the native token of the XRP Ledger, without requiring investors to hold digital wallets or use crypto exchanges.

XRPZ is structured as a grantor trust under Delaware law and registered under the Securities Act of 1933. It is not registered under the Investment Company Act of 1940 and is not a commodity pool under the Commodity Exchange Act. As a result, it does not carry the same regulatory framework as mutual funds or 1940 Act ETFs.

The ETF has the following characteristics:

• Holds 100% physical XRP, with minimal cash for operations
• Does not use leverage, derivatives, or hedging
• Is non-diversified and passively managed
• Tracks the CME CF XRP-Dollar Reference Rate – New York Variant

The fund’s XRP is custodied by Coinbase Custody Trust Company, while administration and cash custody are handled by BNY Mellon. Shares trade on NYSE Arca.

Creation and redemption occur in large baskets of approximately 543,060.34 XRP per basket (as of February 17, 2026) through Authorized Participants.

What Did the First Form 10-Q Reveal?

On February 17, 2026, Franklin Templeton filed its first quarterly report (Form 10-Q), covering the period from inception through December 31, 2025.

As of December 31, 2025:

• XRP Holdings: 118,387,154 XRP
• Valuation: Approximately $216 million
• Net Assets (AUM): $211.25 million

By February 17, 2026:

• Total XRP Held: 164,547,283.08 XRP
• Market Value of Holdings: $243,600,734.29
• Shares Outstanding: 15,150,000
• NAV: $16.08
• Market Price: $16.13

The ETF discloses holdings daily and files periodic reports with the SEC.

How Has XRPZ Performed Since Launch?

Performance reflects XRP price volatility.

Since Inception (November 24, 2025)

• Cumulative Market Price Return: -19.10%
• Cumulative NAV Return: -19.59%
• Benchmark Return: -19.57%

As of January 31, 2026 (average annualized since inception):

• Market Price Return: -23.20%
• NAV Return: -22.65%
• Benchmark Return: -22.63%

Year-to-Date 2026 (as of February 17, 2026)

• YTD NAV Return: -18.54%

The ETF has closely tracked its benchmark, indicating limited tracking error.

52-Week Range

• NAV High: $25.18 (January 5, 2026)
• NAV Low: $12.85 (February 5, 2026)

Premium/discount metrics remain moderate:

• 30-day median bid/ask spread: 0.19%
• Average premium/discount since inception: 0.15%

What Are the Fees and Cost Structure?

• Gross Sponsor Fee: 0.19% annually
• Net Sponsor Fee: 0.00% on the first $5.0 billion in assets through May 31, 2026

The sponsor fee accrues daily and reduces NAV over time. There are no other ordinary recurring expenses disclosed.

Compared with other U.S. spot XRP ETFs, XRPZ’s gross expense ratio is among the lowest in the category.

How Does XRPZ Compare With Other XRP ETFs?

As of mid-February 2026:

• XRPZ AUM: approximately $232–243 million
• Estimated cumulative inflows to U.S. XRP ETFs: $1.23 billion
• Total NAV across U.S. XRP ETFs: approximately $1.01 billion

Competitors include:

• Bitwise Asset Management (Bitwise XRP ETF – 0.25% expense ratio)
• Canary Capital (0.28%)
• Grayscale Investments (2.50%)
• 21Shares (0.21%)

XRPZ reported $5.4 million in net inflows for the week ending February 17, 2026, leading weekly flows in the segment.

What Risks Should Investors Understand?

The prospectus outlines material risks:

Market and Volatility Risk

XRP prices can fluctuate sharply. The fund may experience significant losses.

Regulatory Risk

Digital asset regulation in the U.S. continues to evolve. Changes affecting XRP trading or custody could impact the fund.

Custody Risk

Assets are held by Coinbase Custody. Losses from cybersecurity breaches or operational failure are possible. Holdings are not FDIC-insured.

Passive Management Risk

The fund does not adjust positions in response to market conditions.

Structural Risk

As a grantor trust, the grantor is treated as the direct owner of XRP for U.S. tax purposes. Fees reduce XRP per share over time.

The fund is non-diversified and not designed as a complete investment portfolio.

How Does XRPZ Fit Into Institutional Crypto Adoption?

XRPZ’s launch followed regulatory clarity regarding XRP’s classification in secondary markets. It also followed listing through the Depository Trust & Clearing Corporation infrastructure.

Franklin Templeton manages over $1.7 trillion in assets as of early 2026. XRPZ extends its digital asset lineup, which includes Bitcoin and Ethereum ETFs.

The fund is accessible through more than 13,000 advisory firms and brokerage platforms, including retirement accounts.

Conclusion

The Franklin XRP ETF (XRPZ) provides regulated, passive exposure to physical XRP through a grantor trust structure. Its first quarterly filing confirms asset growth to more than 164 million XRP and assets above $240 million by mid-February 2026. Performance has closely tracked the CME CF benchmark, with returns reflecting XRP market volatility.

The ETF carries a 0.19% sponsor fee, currently waived on the first $5 billion in assets through May 31, 2026. Investors face volatility, custody, regulatory, and structural risks typical of single-asset digital products. XRPZ operates as a passive vehicle with no downside risk management.

Sources

• U.S. Securities and Exchange Commission: Franklin XRP ETF Form 10-Q filing (February 17, 2026)
• Franklin Templeton: Franklin XRP ETF prospectus and fund disclosures
• Tradingview: Franklin XRP ETF