Franklin XRP Trust filed its first 10-K with the SEC on June 11, covering the fund's November 2025 to March 2026 launch period. The filing documents a $108.9 million net decrease in fund assets. Of that loss, $107.3 million came directly from XRP's 40.04% price decline during the five-month window, leaving the remaining $1.6 million attributable to fund expenses and operations.
The price slide hit shareholder value mechanically. Net asset value per share fell from an implied starting level to $14.63 by the filing date. This wasn't a judgment on fund construction or custody (the trust held XRP directly) but a reflection of XRP's market move during a volatile stretch in early 2026.
Franklin Templeton waived 0.19% of the fund's annual fees during the period. The structure matters for cost-conscious investors: the full gross expense ratio sits higher, but the waiver reduced what shareholders paid in this early phase. The 10-K doesn't specify an end date for the waiver, meaning it remains active at the discretion of the sponsor.
Frankly, a debut-period loss tied almost entirely to asset-price movement tells you little about the fund's operational fitness. The filing shows the mechanics worked as designed. Whether the trust grows assets or shrinks depends now on investor appetite for XRP as an ETF wrapper and where the token trades next.