| Line Item | 2026-03-31 | Y/Y |
|---|---|---|
| Net Income | -$108.9M | — |
| Line Item | 2026-03-31 | Y/Y |
|---|---|---|
| Total Assets | $215.1M | — |
| Total Liabilities | $0 | — |
| Stockholders' Equity | $323.8M | — |
| Line Item | 2026-03-31 | Y/Y |
|---|---|---|
| Operating Cash Flow | -$156.7M | — |
| Financing Cash Flow | $156.7M | — |
Business Overview
The Franklin XRP Trust is a passive investment vehicle formed in February 2025 that offers the Franklin XRP ETF (ticker: XRPZ), designed to provide convenient, cost-effective exposure to XRP through securities markets rather than direct digital asset ownership. The Fund seeks to reflect the price of XRP before expenses and holds XRP in custody with Coinbase Custody, with BNY Mellon serving as Administrator and Transfer Agent. The Fund operates as a simple pass-through trust that does not actively manage holdings, utilize leverage or derivatives, and only sells XRP to cover the Sponsor's fee (0.19% annually, waived on first $5 billion through May 2026) and Fund expenses.
Segment Performance
The Fund commenced operations on November 24, 2025. For the period from November 24, 2025 to March 31, 2026, the Fund recognized a Sponsor's Fee of $142,056, which was entirely waived and reimbursed by the Sponsor, resulting in net Sponsor's fee payable of $0. No other operational performance metrics, asset levels, or revenue/income figures are provided in this filing excerpt.
Forward Guidance
The Sponsor has agreed to waive the entire Sponsor's Fee on the first $5.0 billion of the Fund's assets for a period through May 31, 2026. The filing states: 'The Sponsor has agreed, for a period through May 31, 2026, to waive the entire Sponsor's Fee on the first $5.0 billion of the Fund's assets.' No other forward-looking guidance or targets are provided.
Key Risk Factors
Key risks include: (1) counterparty and custodial risks related to the Prime Broker's omnibus holdings of XRP in hot and cold wallets with no discrete asset claims and lack of transparency on hot vs. cold storage percentages; (2) liquidity and pricing risks given that XRP trading on constituent platforms may occur at materially higher or lower prices than the CF Benchmarks Index valuation; (3) regulatory and operational risks from XRP Ledger forks, potential regulatory changes, and the reliance on third-party service providers (Coinbase Custody, BNY Mellon, CF Benchmarks) whose failure could impair Fund operations; (4) the Sponsor's unilateral discretion to terminate the Fund or suspend XRP sales, and the Fund's need to continuously sell XRP to pay fees, resulting in per-share dilution over time; (5) limited liability protections for extraordinary expenses and litigation costs that shareholders must bear through XRP liquidation.