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Item 1. Financial Statements

2026-08-07 compared with 2026-05-13 · 288 added, 272 removed, 222 unchanged (72% of the section changed)

CANARY XRP ETF

Statements of Assets and Liabilities

March 31, 2026 (Unaudited)

Statements of Assets

and Liabilities

June 30, 2026

December 31, 2025

30 unchanged sentences

Schedule of Investment

March 31, 2026 (Unaudited)

June 30, 2026

Investments - 100.0 %

24 unchanged sentences

CANARY XRP ETF

Statement of Operations

For the Quarter Ended March 31, 2026 (Unaudited) *

Statements of Operations

For the Three Months Ended June 30, 2026 (Unaudited) *

For the Six Months Ended June 30, 2026 (Unaudited) *

Sponsor fees (Note 3)

3 unchanged sentences

$ ( 341,899 )

$ ( 716,898 )

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

2 unchanged sentences

$ ( 3,355,237 )

$ ( 3,590,846 )

Net change in unrealized appreciation (depreciation) of:

1 unchanged sentence

( 64,967,101 )

( 159,696,803 )

Net realized and unrealized gain (loss) on investments

( 68,322,338 )

( 163,287,649 )

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

$ ( 68,664,237 )

* No comparative financial statements have been provided as the initial share purchase date of the Trust was November 12, 2025.

$ ( 164,004,547 )

* No comparative financial statements have been presented as the initial share purchase date

of the Trust was November 12, 2025.

See accompanying notes to financial statements.

CANARY XRP ETF

Statement of Changes in Net Assets

For the Quarter Ended March 31, 2026 (Unaudited) *

Statements of Changes

in Net Assets

For the Three Months Ended June 30, 2026 (Unaudited) *

For the Six Months Ended June 30, 2026 (Unaudited) *

INCREASE (DECREASE) IN NET ASSETS:

1 unchanged sentence

$ ( 341,899 )

$ ( 716,898 )

Net realized gain (loss) on investments

( 3,355,237 )

( 3,590,846 )

Net change in unrealized appreciation (depreciation) of investments

( 64,967,101 )

( 159,696,803 )

Net increase (decrease) in net assets resulting from operations

( 68,664,237 )

( 164,004,547 )

CAPITAL SHARE TRANSACTIONS

Shares redeemed

( 5,210,645 )

( 5,896,751 )

Net increase (decrease) in net assets from capital share transactions

1 unchanged sentence

( 23,593,051 )

( 81,645,754 )

Beginning of Period

1 unchanged sentence

$ 241,173,971

* No comparative financial statements have been provided as the initial share purchase date of the Trust was November 12, 2025.

$ 241,173,971

* No comparative financial statements have been presented as the initial share purchase date

of the Trust was November 12, 2025.

See accompanying notes to financial statements.

1 unchanged sentence

NOTES TO THE FINANCIAL STATEMENTS

March 31, 2026 (Unaudited)

The Canary XRP

ETF (the “Trust”) is a Delaware statutory trust, formed on September 24, 2024, pursuant to the Delaware Statutory Trust Act.

The Trust continuously issues common shares representing fractional undivided beneficial interest in and ownership of the Trust that may

be purchased and sold on the Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “XRPC.” The Trust operates

pursuant to a Trust Agreement, as amended and/or restated from time to time (the “Trust Agreement”).

CSC Delaware Trust Company,

a Delaware trust company, is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by Canary Capital

Group LLC (the “Sponsor”).

an exchange-traded fund that issues shares of beneficial interest (the “Shares”) that are listed and trade on the Exchange.

The Trust’s investment objective is to seek to provide exposure to the price of XRP held by the Trust, less the expenses of the

Trust’s operations and other liabilities.

The Trust is a passive investment vehicle that does not seek to generate returns beyond

tracking the price of XRP.

In seeking to achieve its investment objective, the Trust holds XRP and establishes its net asset value (“NAV”)

on each business day by reference to the CoinDesk XRP CCIXber 60m New York Rate (the “Pricing Benchmark”).

Benchmark is calculated by CoinDesk Indices (the “Benchmark Provider”) based on a 60-minute time-weighted average price of

the XRP CCIXber Reference Rate (the “Underlying Index”), which is an aggregation of executed trade flow of major XRP trading

platforms (“Constituent Platforms”).

The Benchmark Provider publishes the Pricing Benchmark.

The Trust is sponsored by the

June 30, 2026 (Unaudited)

The Canary XRP ETF (the “Trust”)

is a Delaware statutory trust, formed on September 24, 2024, pursuant to the Delaware Statutory Trust Act.

The Trust continuously issues

common shares representing fractional undivided beneficial interest in and ownership of the Trust that may be purchased and sold on the

Nasdaq Stock Market, LLC (the “Exchange”) under the symbol “XRPC.” The Trust operates pursuant to a Trust Agreement,

as amended and/or restated from time to time (the “Trust Agreement”).

CSC Delaware Trust Company, a Delaware trust company,

is the trustee of the Trust (the “Trustee”).

The Trust is managed and controlled by Canary Capital Group LLC (the “Sponsor”).

Trust is an exchange-traded fund that issues shares of beneficial interest (the “Shares”) that are listed and trade on the

The Trust’s investment objective is to seek to provide exposure to the price of XRP, the native asset of the XRP Ledger

(“XRP”), held by the Trust, less the expenses of the Trust’s operations and other liabilities.

The Trust is a passive

investment vehicle that does not seek to generate returns beyond tracking the price of XRP.

In seeking to achieve its investment objective,

the Trust holds XRP and establishes its net asset value (“NAV”) on each business day by reference to the CoinDesk XRP USD

CCIXber 60m New York Rate (the “Pricing Benchmark”).

The Pricing Benchmark is calculated by CoinDesk Indices (the “Benchmark

Provider”) based on a 60-minute time-weighted average price of the XRP-USD CCIXber Reference Rate (the “Underlying Index”),

which is an aggregation of executed trade flow of major XRP trading platforms (“Constituent Platforms”).

The Benchmark Provider

publishes the Pricing Benchmark.

The Trust is sponsored by the Sponsor.

Significant Accounting Policies

Basis of Presentation

The following

is a summary of significant accounting policies consistently followed by the Trust in the preparation of these financial statements.

accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States

of America (“GAAP”) and are stated in U.S.

The Trust’s financial statements were prepared using the accounting

and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)

Topic 946, Financial Services — Investment Companies.

The Trust qualifies as an investment company solely for accounting purposes

and not for any other purpose.

The Trust is not registered, and is not required to be registered, as an investment company under the Investment

Company Act of 1940, as amended.

The following is a summary of significant

accounting policies consistently followed by the Trust in the preparation of these financial statements.

The accompanying financial statements

have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and

are stated in U.S.

The Trust’s financial statements were prepared using the accounting and reporting guidance of the Financial

Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services —

Investment Companies.

The Trust qualifies as an investment company solely for accounting purposes and not for any other purpose.

is not registered, and is not required to be registered, as an investment company under the Investment Company Act of 1940, as amended.

The Trust follows the significant accounting policies described below.

13 unchanged sentences

Investment Transactions and Investment Income

The Trust purchases

XRP upon the creation of Shares and sells XRP upon the redemption of Shares.

The Trust purchases XRP upon the creation

of Shares and sells XRP upon the redemption of Shares.

Transactions are recorded on a trade date basis.

gains (losses) and changes in unrealized gains (losses) on open positions are determined on a specific identification basis and recognized

in the statement of operations in the period in which the sale occurred or the changes in unrealized gains (losses) occurred.

The Sponsor takes the position

that the Trust is properly treated as a grantor trust for U.S.

Realized gains (losses) and changes

in unrealized gains (losses) on open positions are determined on a specific identification basis and recognized in the statement of operations

in the period in which the sale occurred or the changes in unrealized gains (losses) occurred.

Sponsor takes the position that the Trust is properly treated as a grantor trust for U.S.

federal income tax purposes.

Assuming that the Trust is a grantor

trust, the Trust will not be subject to U.S.

Assuming that

the Trust is a grantor trust, the Trust will not be subject to U.S.

federal income tax.

Rather, if the Trust is a grantor trust, each beneficial owner of

Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata portion of the Trust’s

income, gains, losses and deductions will “flow through” to each beneficial owner of Shares.

If the Trust were not

properly classified as a grantor trust, the Trust might be classified as a partnership for U.S.

Rather, if the Trust is a grantor trust,

each beneficial owner of Shares will be treated as directly owning its pro rata Share of the Trust’s assets and a pro rata

portion of the Trust’s income, gains, losses and deductions will “flow through” to each beneficial owner of

If the Trust were not properly classified as a grantor trust, the Trust might be classified as a partnership for U.S.

federal income tax purposes.

However, due to the uncertain treatment of digital assets, with respect to staking and including forks, airdrops and similar

occurrences for U.S.

However, due to the uncertain treatment of digital assets, with respect to staking and including forks,

airdrops and similar occurrences for U.S.

federal income tax purposes, there can be no assurance in this regard.

If the Trust were classified as a

partnership for U.S.

federal income tax purposes, the tax consequences of owning Shares generally would not be materially different

from the tax consequences described herein, although there might be certain differences, including with respect to timing.

addition, tax information reports provided to beneficial owners of Shares would be made in a different form.

If the Trust were not

classified as either a grantor trust or a partnership for U.S.

federal income tax purposes, it would be classified as a corporation

for such purposes.

If the Trust were

classified as a partnership for U.S.

federal income tax purposes, the tax consequences of owning Shares generally would not be

materially different from the tax consequences described herein, although there might be certain differences, including with respect

In addition, tax information reports provided to beneficial owners of Shares would be made in a different form.

Trust were not classified as either a grantor trust or a partnership for U.S.

federal income tax purposes, it would be classified as

a corporation for such purposes.

In that event, the Trust would be subject to entity-level U.S.

federal income tax (currently at the rate of 21%)

on its net taxable income and certain distributions made by the Trust to shareholders would be treated as taxable dividends to the

extent of the Trust’s current and accumulated earnings and profits.

federal income tax (currently at the

rate of 21%) on its net taxable income and certain distributions made by the Trust to shareholders would be treated as taxable

dividends to the extent of the Trust’s current and accumulated earnings and profits.

Digital Asset Trading Platform Valuation

US GAAP defines fair value as the price the Trust

would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement

US GAAP defines fair value as the price the Trust would

receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.

The Trust’s policy is to value investments held at fair value.

The Trust identifies

and determines the XRP principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent

with the application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the

market with the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based

on the market with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity

information and based on initial analysis will select an exchange market as the Trust’s principal market.

The Trust identifies and determines

the XRP principal market (or in the absence of a principal market, the most advantageous market) for GAAP purposes consistent with the

application of the fair value measurement framework in FASB ASC 820 – Fair Value Measurement.

A principal market is the market with

the greatest volume and activity level for the asset or liability.

The determination of the principal market will be based on the market

with the greatest volume and level of activity that can be accessed.

The Trust obtains relevant volume and level of activity information

and based on initial analysis will select an exchange market as the Trust’s principal market.

The net asset value (“NAV”)

3 unchanged sentences

that events have occurred, or activities have changed in a manner that could change the Trust’s determination of the principal market.

Various inputs

are used in determining the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”)

or they may be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting

of three broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value

hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels

of the fair value hierarchy are as follows:

Various inputs are used in determining

the fair value of assets and liabilities.

Inputs may be based on independent market data (“observable inputs”) or they may

be internally developed (“unobservable inputs”).

These inputs are categorized into a disclosure hierarchy consisting of three

broad levels for financial reporting purposes.

The level of a value determined for an asset or liability within the fair value hierarchy

is based on the lowest level of any input that is significant to the fair value measurement in its entirety.

The three levels of the fair

value hierarchy are as follows:

Unadjusted quoted prices in active markets

for identical assets or liabilities;

other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including

quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets

that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that

are derived principally from or corroborated by observable market data by correlation or other means;

Unobservable inputs, including the Trust’s

assumptions used in determining the fair value of investments, where there is little or no market activity for the asset or liability

at the measurement date.

The following table presents information about the

Trust’s assets measured at fair value:

March 31, 2026 (Unaudited)

Inputs other than quoted prices

included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar

assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered

to be active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally

from or corroborated by observable market data by correlation or other means;

Unobservable inputs,

including the Trust’s assumptions used in determining the fair value of investments, where there is little or no market activity

for the asset or liability at the measurement date.

The following table presents information

about the Trust’s assets measured at fair value:

June 30, 2026 (Unaudited)

Investment in XRP

5 unchanged sentences

$ 322,967,103

There were no transfers between levels

for the quarter ended March 31, 2026 or for the period ended December 31, 2025.

The following tables summarize activity in XRP for the

quarter ended March 31, 2026 and for the period from November 12, 2025 (initial share purchase date) to December 31, 2025:

There were no transfers between

levels for the six months ended June 30, 2026 or for the period from November 12, 2025 (initial share purchase date) through December

The following tables summarize

activity in XRP for the six months ended June 30, 2026 and for the period from November 12, 2025 (initial share purchase date) through

December 31, 2025.

Beginning balance as of January 1, 2026

2 unchanged sentences

XRP sold for the redemption of Shares

( 3,933,000 )

( 5,896,744 )

XRP contributed in-kind for the creation of Shares

5 unchanged sentences

Net realized gain (loss) on investment in XRP sold for redemptions

Ending balance as of March 31, 2026 (Unaudited)

( 3,258,648 )

Ending balance as of June 30, 2026 (Unaudited)

$ 241,278,596

Beginning balance as of November 12, 2025

12 unchanged sentences

Calculation of NAV

The Administrator,

defined below, determines the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly as practicable after

The NAV of the Trust is the aggregate value of the Trust’s assets less its accrued but unpaid liabilities (which include

accrued expenses).

In determining the Trust’s NAV, the Administrator values XRP held by the Trust based on the price set by the

Index as of 4:00 p.m.

The Administrator, defined below, determines

the NAV of the Trust on each day that the Exchange is open for regular trading, as promptly as practicable after 4:00 p.m.

of the Trust is the aggregate value of the Trust’s assets less its accrued but unpaid liabilities (which include accrued expenses).

In determining the Trust’s NAV, the Administrator values XRP held by the Trust based on the price set by the Index as of 4:00 p.m.

The Administrator also determines the NAV per Share.

For purposes of the Trust’s financial statements,

the Trust utilizes a pricing source that is consistent with GAAP, as of the financial statement measurement date, which may result in

valuations that differ from the Trust’s daily NAV calculations.

The Sponsor determines in its sole discretion the valuation sources

and policies used to prepare the Trust’s financial statements in accordance with GAAP.

For purposes of the Trust’s financial statements, the Trust utilizes a

pricing source that is consistent with GAAP, as of the financial statement measurement date, which may result in valuations that differ

from the Trust’s daily NAV calculations.

The Sponsor determines in its sole discretion the valuation sources and policies used to

prepare the Trust’s financial statements in accordance with GAAP.

The Trust’s NAV per Share is calculated by taking

1 unchanged sentence

Segment Reporting

The Trust operates through a single

operating and reporting segment with a primary objective of providing exposure to the price of XRP held by the Trust, less the expenses

of the Trust’s operations and other liabilities.

The Trust’s chief operating decision maker (“CODM”) is the Principal

Executive Officer.

The CODM monitors the operating results of the Trust and the Trust’s long-term strategic asset allocation is

predetermined in accordance with the terms of its prospectus, based on the defined investment strategy against which the CODM assesses

the Trust’s performance.

In addition to other metrics, the CODM uses net increase (decrease) in net assets resulting from operations

as a key metric to assess the Trust’s performance.

Trust operates through a single operating and reporting segment with a primary objective of providing exposure to the price of XRP held

by the Trust, less the expenses of the Trust’s operations and other liabilities.

The Trust’s chief operating decision maker

(“CODM”) is the Principal Executive Officer.

The CODM monitors the operating results of the Trust and the Trust’s long-term

strategic asset allocation is predetermined in accordance with the terms of its prospectus, based on the defined investment strategy

against which the CODM assesses the Trust’s performance.

In addition to other metrics, the CODM uses net increase (decrease) in

net assets resulting from operations as a key metric to assess the Trust’s performance.

Trust Expenses and Other Agreements

The Trust pays

the Sponsor an annual unified fee of 0.50 % of the Trust’s XRP Holdings (the “Sponsor Fee”).

The Trust’s “XRP

Holdings” is the quantity of the Trust’s XRP plus any cash or other assets held by the Trust represented in XRP as calculated

using the Index Price, less its liabilities (which include estimated accrued but unpaid fees and expenses) represented in XRP as calculated

using the Index Price.

The Trust pays the Sponsor an annual

unified fee of 0.50 % of the Trust’s XRP Holdings (the “Sponsor Fee”).

The Trust’s “XRP Holdings” is

the quantity of the Trust’s XRP plus any cash or other assets held by the Trust represented in XRP as calculated using the Index

Price, less its liabilities (which include estimated accrued but unpaid fees and expenses) represented in XRP as calculated using the

The Sponsor Fee is paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement.

The Administrator calculates the Sponsor Fee in respect of each day by reference to the prior day’s XRP Holdings.

Administrator calculates the Sponsor Fee in respect of each day by reference to the prior day’s XRP Holdings.

Except for periods

6 unchanged sentences

shall create no obligation to waive any such fees during any period not covered by the waiver.

As partial consideration

for its receipt of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees and other expenses incurred

by the Trust in the ordinary course of its affairs, excluding taxes, but including:

(i) the fees of the Trust’s third-party service

providers, including, but not limited to, the Marketing Agent, the Administrator, the Custodians, the Transfer Agent, the Cash Custodian,

the Index Provider, and the Trustee, (ii) the fees and expenses related to the listing, quotation or trading of the Shares on the Exchange

(including customary legal, marketing and audit fees and expenses), (iii) legal fees and expenses incurred in the ordinary course, (iv)

audit fees, (v) regulatory fees, including, if applicable, any fees relating to the registration of the Trust and Shares, including any

ongoing filings related to the offering of Shares, under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of

maintaining the Trust’s website and (viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively,

the “Sponsor-paid Expenses”), provided that any expense that qualifies as an Extraordinary Expense (as defined below) will

not be deemed to be a Sponsor-paid Expense.

As partial consideration for its receipt

of the Sponsor Fee, the Sponsor is obligated under the Trust Agreement to assume and pay all fees and other expenses incurred by the Trust

in the ordinary course of its affairs, excluding taxes, but including:

(i) the fees of the Trust’s third-party service providers,

including, but not limited to, the Marketing Agent, the Administrator, the Custodians, the Transfer Agent, the Cash Custodian, the Index

Provider, and the Trustee, (ii) the fees and expenses related to the listing, quotation or trading of the Shares on the Exchange (including

customary legal, marketing and audit fees and expenses), (iii) legal fees and expenses incurred in the ordinary course, (iv) audit fees,

(v) regulatory fees, including, if applicable, any fees relating to the registration of the Trust and Shares, including any ongoing filings

related to the offering of Shares, under the 1933 Act or the 1934 Act, (vi) printing and mailing costs, (vii) costs of maintaining the

Trust’s website and (viii) applicable license fees (each, a “Sponsor-paid Expense” and collectively, the “Sponsor-paid

Expenses”), provided that any expense that qualifies as an Extraordinary Expense (as defined below) will not be deemed to be a Sponsor-paid

There is no cap on the amount of Sponsor-paid Expenses.

The Sponsor has also assumed all fees

and expenses related to the organization and offering of the Trust and the Shares.

The Trust may

incur certain extraordinary, nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to, brokerage and transaction

costs associated with the sale or transfer of XRP, taxes and governmental charges, expenses and costs of any extraordinary services performed

by the Sponsor (or any other service provider) on behalf of the Trust to protect the Trust, the Trust’s assets, or the interests

of Shareholders, any indemnification of the Custodians or other agents, service providers or counterparties of the Trust, and extraordinary

legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation

matters (collectively, “Extraordinary Expenses”).

To the extent on-chain transaction fees are incurred in connection with

transfers or sales of XRP to pay Extraordinary Expenses, the Trust will bear such fees, but to the extent there are any on-chain transaction

fees incurred in connection with the transfers of XRP to pay the Sponsor Fee or any Sponsor-paid Expenses, the Sponsor, and not the Trust,

The Sponsor has also assumed all fees and expenses related to the organization

and offering of the Trust and the Shares.

The Trust may incur certain extraordinary,

nonrecurring expenses that are not Sponsor-paid Expenses, including, but not limited to, brokerage and transaction costs associated with

the sale or transfer of XRP, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor

(or any other service provider) on behalf of the Trust to protect the Trust, the Trust’s assets, or the interests of Shareholders,

any indemnification of the Custodians or other agents, service providers or counterparties of the Trust, and extraordinary legal fees

and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters

(collectively, “Extraordinary Expenses”).

To the extent on-chain transaction fees are incurred in connection with transfers

or sales of XRP to pay Extraordinary Expenses, the Trust will bear such fees, but to the extent there are any on-chain transaction fees

incurred in connection with the transfers of XRP to pay the Sponsor Fee or any Sponsor-paid Expenses, the Sponsor, and not the Trust,

shall bear such fees.

To the extent

it does not have cash readily available, the Sponsor will cause the transfer or sale of XRP in such quantity as may be necessary to permit

the payment of Trust expenses and liabilities not assumed by the Sponsor or for payment of cash redemption proceeds to Authorized Participants

(as defined below).

The Trust will seek to transfer or sell XRP at such times and in the smallest amounts required to permit such payments

as they become due.

With respect to transfers or sales necessary to pay Trust expenses and liabilities that are denominated other than

in XRP, the amount of XRP transferred or sold may vary from time to time depending on the actual sales price of XRP relative to the Trust’s

To the extent it does not have cash

readily available, the Sponsor will cause the transfer or sale of XRP in such quantity as may be necessary to permit the payment of Trust

expenses and liabilities not assumed by the Sponsor or for payment of cash redemption proceeds to Authorized Participants (as defined

The Trust will seek to transfer or sell XRP at such times and in the smallest amounts required to permit such payments as they

With respect to transfers or sales necessary to pay Trust expenses and liabilities that are denominated other than in XRP,

the amount of XRP transferred or sold may vary from time to time depending on the actual sales price of XRP relative to the Trust’s

expenses and liabilities (e.g., if the price of XRP falls, the amount of XRP needed to be transferred or sold to pay an expense or liability

5 unchanged sentences

other legal compliance policies and procedures.

Under the terms

of each Authorized Participant Agreement, the Authorized Participants will be responsible for any brokerage or transaction costs associated

with the sale or transfer of XRP incurred in connection with the fulfillment of a creation or redemption order.

(b) Administrator,

Custodians and Transfer Agent

Bancorp Fund Services, LLC,

doing business as U.S.

Bank Global Fund Services (the “Administrator” and “Transfer Agent”) serves as

administrator, transfer agent and accounting agent of the Trust pursuant to a Fund Servicing Agreement.

Coinbase Custody Trust

Company, LLC (the “Coinbase Custodian”) and BitGo Trust Company, Inc.

(the “BitGo Custodian” and together

with Coinbase Custodian, the “Custodians”) serve as the Trust’s Custodians.

Under the Coinbase Custodial Services

Agreement and the BitGo Custodial Services Agreement, the Custodians are responsible for safekeeping all the Trust’s XRP

allocated to each of the Custodians.

The Custodians were selected by the Sponsor.

The Sponsor is responsible for opening accounts

with the Custodians that will hold the Trust’s XRP (the “XRP Accounts”), as well as facilitating the transfer or

sale of XRP required for the operation of the Trust.

Bank, N.A., an affiliate of the Administrator and Transfer Agent serves as

the cash custodian for the Trust (the “Cash Custodian”).

The Cash Custodian is responsible for safekeeping all cash and

other non-XRP assets of the Trust.

Under the terms of each Authorized

Participant Agreement, the Authorized Participants will be responsible for any brokerage or transaction costs associated with the sale

or transfer of XRP incurred in connection with the fulfillment of a creation or redemption order.

(b) Administrator, Custodians and Transfer Agent

Bancorp Fund Services, LLC, doing

business as U.S.

Bank Global Fund Services (the “Administrator” and “Transfer Agent”) serves as administrator,

transfer agent and accounting agent of the Trust pursuant to a Fund Servicing Agreement.

Coinbase Custody Trust Company, LLC (the “Coinbase

Custodian”) and BitGo Trust Company, Inc.

(the “BitGo Custodian” and together with Coinbase Custodian, the “Custodians”)

serve as the Trust’s Custodians.

Under the Coinbase Custodial Services Agreement and the BitGo Custodial Services Agreement, the

Custodians are responsible for safekeeping all the Trust’s XRP allocated to each of the Custodians.

The Custodians were selected

by the Sponsor.

The Sponsor is responsible for opening accounts with the Custodians that will hold the Trust’s XRP (the “XRP

Accounts”), as well as facilitating the transfer or sale of XRP required for the operation of the Trust.

Bank, N.A., an affiliate

of the Administrator and Transfer Agent serves as the cash custodian for the Trust (the “Cash Custodian”).

The Cash Custodian

is responsible for safekeeping all cash and other non-XRP assets of the Trust.

Paralel Distributors

LLC is the marketing agent of the Trust (the “Marketing Agent”) and is responsible for reviewing and approving the marketing

materials, including the Trust’s website, prepared by the Sponsor for compliance with applicable SEC and Financial Industry Regulatory

Authority, Inc.

Paralel Distributors LLC is the marketing

agent of the Trust (the “Marketing Agent”) and is responsible for reviewing and approving the marketing materials, including

the Trust’s website, prepared by the Sponsor for compliance with applicable SEC and Financial Industry Regulatory Authority, Inc.

(“FINRA”) advertising laws, rules, and regulations pursuant to a marketing agreement with the Trust.

The Marketing

Agent is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and a member

With the assistance of the Marketing Agent, the Sponsor developed a marketing plan for the Trust, prepared marketing materials

regarding the Shares of the Trust, and exercises the marketing plan of the Trust on an ongoing basis.

The Marketing Agent is

a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and a member of FINRA.

With the assistance of the Marketing Agent, the Sponsor developed a marketing plan for the Trust, prepared marketing materials regarding

the Shares of the Trust, and exercises the marketing plan of the Trust on an ongoing basis.

(d) Principal Financial Officer

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Capital Share Transactions

The Trust is an

exchange-traded product.

The Trust issues Shares on a continuous basis and, when the Trust creates or redeems its Shares, it does so in

blocks of 10,000 Shares (a “Basket”) based on the quantity of XRP attributable to each Share of the Trust (net of accrued

but unpaid expenses and liabilities).

Certain financial firms are authorized to purchase or redeem Shares of the Trust (“Authorized

Participants”).

The manner by

which creations are made is dictated by the terms of the Authorized Participant Agreement.

Creation orders may be denominated and settled

in an amount of XRP (“In-Kind Creation Order”) or in cash (“Cash Creation Order”).

By placing an In-Kind Creation

Order, an Authorized Participant agrees to facilitate the deposit of XRP with the Custodian, either directly or indirectly through an

Authorized Participant Designee.

By placing a Cash Creation Order, an Authorized Participant agrees to facilitate the deposit of cash

with the Cash Custodian.

An Authorized Participant may not withdraw a creation order without the prior consent of the Sponsor in its discretion.

The manner by

which redemptions are made is dictated by the terms of the Authorized Participant Agreement.

Redemption orders are denominated and settled

either in-kind (“In-Kind Redemption Order”) or in cash (“Cash Redemption Order”).

By placing a redemption order,

an Authorized Participant agrees to facilitate the deposit of Shares with the Transfer Agent.

If an Authorized Participant fails to consummate

the foregoing, the order will be cancelled or delayed until the required Shares have been received.

An Authorized Participant may not

withdraw a redemption order without the prior consent of the Sponsor in its discretion.

Shares initially

comprising the same Basket but offered by the Authorized Participants to the public at different times may have different offering prices,

which depend on various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions

at the time of a transaction.

Shareholders who buy or sell Shares during the day from their broker may do so at a premium or discount

relative to the NAV of the Shares of the Trust.

The Trust is an exchange-traded product.

The Trust issues Shares on a continuous basis and, when the Trust creates or redeems its Shares, it does so in blocks of 10,000 Shares

(a “Basket”) based on the quantity of XRP attributable to each Share of the Trust (net of accrued but unpaid expenses and

liabilities).

Certain financial firms are authorized to purchase or redeem Shares of the Trust (“Authorized Participants”).

The manner by which creations are made

is dictated by the terms of the Authorized Participant Agreement.

Creation orders may be denominated and settled in an amount of XRP (“In-Kind

Creation Order”) or in cash (“Cash Creation Order”).

By placing an In-Kind Creation Order, an Authorized Participant

agrees to facilitate the deposit of XRP with the Custodian, either directly or indirectly through an Authorized Participant Designee.

By placing a Cash Creation Order, an Authorized Participant agrees to facilitate the deposit of cash with the Cash Custodian.

An Authorized

Participant may not withdraw a creation order without the prior consent of the Sponsor in its discretion.

The manner by which redemptions are

made is dictated by the terms of the Authorized Participant Agreement.

Redemption orders are denominated and settled either in-kind (“In-Kind

Redemption Order”) or in cash (“Cash Redemption Order”).

By placing a redemption order, an Authorized Participant agrees

to facilitate the deposit of Shares with the Transfer Agent.

If an Authorized Participant fails to consummate the foregoing, the order

will be cancelled or delayed until the required Shares have been received.

An Authorized Participant may not withdraw a redemption order

without the prior consent of the Sponsor in its discretion.

Shares initially comprising the same

Basket but offered by the Authorized Participants to the public at different times may have different offering prices, which depend on

various factors, including the supply and demand for Shares, the value of the Trust’s assets, and market conditions at the time

of a transaction.

Shareholders who buy or sell Shares during the day from their broker may do so at a premium or discount relative to

the NAV of the Shares of the Trust.

Shareholders who decide to buy or sell Shares of the

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The Transfer Agent coordinates with the Trust’s custodians to facilitate settlement of

Share activity for the quarter ended March 31, 2026

was as follows:

Quarter Ended March 31, 2026 (Unaudited) (a)

Share activity for the three and six months ended June

30, 2026 were as follows:

Three Months Ended

Six Months Ended

Number of Shares

Value of Shares

Number of Shares

Value of Shares

( 5,210,645 )

( 5,896,751 )

Net change in Shares created and redeemed

(a) No comparative periods have been presented as the initial share purchase date of the Trust

* No comparative periods have been presented as the initial share purchase date of the Trust

was November 12, 2025.

Financial Highlights

The following

financial highlights relate to investment performance and operations for a Share outstanding for the quarter ended March 31, 2026.

The total return at NAV is based on the change in NAV of a Share during the period, and the total return at market value is based on

the change in market value of a Share on the Exchange during the period.

An individual investor’s return and ratios may vary based

on the timing of capital transactions.

Quarter Ended March 31, 2026 (Unaudited) *

The following financial highlights

relate to investment performance and operations for a Share outstanding for the three and six months ended June 30, 2026.

return at NAV is based on the change in NAV of a Share during the period, and the total return at market value is based on the change

in market value of a Share on the Exchange during the period.

An individual investor’s return and ratios may vary based on the timing

of capital transactions.

Three Months Ended June 30, 2026 (Unaudited) *

Six Months Ended June 30, 2026 (Unaudited) *

Net Asset Value, Beginning of Period

8 unchanged sentences

Expense Ratio (e)

Net Investment Loss (e)

comparative financial highlights have been presented as the initial share purchase date of the Trust was November 12,

Net investment loss per share represents net investment loss divided by the daily average shares of beneficial

interest outstanding during the period.

Due to timing of capital share transactions, per share amounts may not compare with amounts appearing elsewhere

within these Financial Statements.

Market values are determined at the close of the applicable primary listing exchange, which may be later

than when the Trust’s net asset value is calculated.

Not annualized.

Net Investment Income (Loss) (e)

* No comparative financial highlights have been presented as the initial share purchase date

of the Trust was November 12, 2025.

(a) Net investment loss per share represents net investment loss divided by the daily

average shares of beneficial interest outstanding during the period.

(b) Due to timing of capital share transactions, per share amounts may not compare

with amounts appearing elsewhere within these Financial Statements.

which may be later than when the Trust’s net asset value is calculated.

(d) Not annualized.

(e) Annualized.

Related Parties

The Sponsor is considered to

be a related party to the Trust.

The Sponsor is considered

to be a related party to the Trust.

The Trust’s operations are supported by its Sponsor.

As of March 31, 2026, the Sponsor did not own any

Shares of the Trust.

As of June 30, 2026, the Sponsor did not own

any Shares of the Trust.

Commitments and Contingent Liabilities

In the normal

course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

The Trust’s maximum

exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have not yet

occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss under these arrangements to be remote.

normal course of business, the Trust may enter into contracts that contain a variety of general indemnification clauses.

maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust which have

not yet occurred and cannot be predicted with any certainty.

However, the Sponsor believes the risk of loss under these arrangements

to be remote.

There were no commitments or contingencies required to be disclosed as of the date of the financial statements.

Concentration Risk

Substantially all of the Trust’s

assets are holdings of XRP, which creates a concentration risk associated with fluctuations in the price of XRP.

Accordingly, a decline

in the price of XRP will have an adverse effect on the value of the Shares of the Trust.

Factors that may have the effect of causing

a decline in the price of XRP include negative perception of digital assets;

a lack of stability and standardized regulation in the digital

asset markets;

Substantially all of the Trust’s assets

are holdings of XRP, which creates a concentration risk associated with fluctuations in the price of XRP.

Accordingly, a decline in the

price of XRP will have an adverse effect on the value of the Shares of the Trust.

Factors that may have the effect of causing a decline

in the price of XRP include negative perception of digital assets;

a lack of stability and standardized regulation in the digital asset

the closure or temporary shutdown of digital asset platforms due to fraud, business failure, security breaches or government

2 unchanged sentences

Subsequent Events

The Sponsor has evaluated subsequent

events through the date the financial statements were issued.

Based on this evaluation, no adjustments or disclosures to the financial

statements were required.

The Sponsor has evaluated subsequent events through

the date the financial statements were issued.

Based on this evaluation, no adjustments or disclosures to the financial statements were

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements