Why this XRP ETF could drift from XRP price as fees, trading costs and fund structure stack up

REX-Osprey’s XRP ETF held 40.25% of its assets in the CoinShares Physical XRP ETP on Aug. 24, routing $22.87 million of a $56.68 million portfolio through another listed product. That structure means XRP ETF fees and trading costs can stack up across two listed products. The same holdings snapshot reported 59.74% as XRP, with 4.7 million XRPR shares outstanding, a $12.09 net asset value and a $12.06 closing price.

That split is not evidence that the CoinShares position lacks XRP backing. CoinShares says its product is 100% physically backed. Nor should XRPR’s XRP line be read as proof that the parent fund directly owns every token: its February shareholder report consolidates a Cayman subsidiary used for XRP exposure.

The allocation is consistent with XRPR’s disclosed mandate. Its June 30 prospectus says the fund seeks to keep at least 80% of assets in XRP and instruments providing XRP exposure, while investing at least 40% in securities such as ETFs and non-U.S. exchange-traded products. At 40.25%, the CoinShares sleeve sits just above that floor.

How XRP ETF fees stack up in the second layer

XRPR discloses a 0.75% total annual operating expense ratio. CoinShares lists a 1.50% annual fee for its XRP ETP. Applying that fee to the Aug. 24 weight produces an estimated 0.60375 percentage-point annual drag inside XRPR before changes in allocation, prices or expenses.