0002059438 2025-04-01 2026-03-31 0002059438 2025-09-30 0002059438 2026-06-09 0002059438 2026-03-31 0002059438 2025-11-24 2026-03-31 0002059438 xrpz:FranklinXRPETFMember 2026-03-31 0002059438 xrpz:FranklinXRPETFMember 2025-11-24 2026-03-31 0002059438 xrpz:XRPMember 2026-03-31 0002059438 xrpz:XRPMember xrpz:FranklinXRPETFMember 2026-03-31 0002059438 2025-11-23 0002059438 xrpz:FranklinXRPETFMember 2025-11-23 0002059438 xrpz:InitialSeedSharesMember 2025-10-15 2025-10-15 0002059438 xrpz:InitialSeedSharesMember 2025-10-15 0002059438 xrpz:InitialSeedSharesMember 2025-11-18 2025-11-18 0002059438 xrpz:SeedCreationUnitsMember 2025-11-18 0002059438 xrpz:SeedCreationUnitsMember 2025-11-18 2025-11-18 0002059438 2025-11-19 2025-11-19 0002059438 2025-11-19 0002059438 xrpz:InitialSeedSharesMember xrpz:FranklinXRPETFMember 2025-10-15 2025-10-15 0002059438 xrpz:InitialSeedSharesMember xrpz:FranklinXRPETFMember 2025-10-15 0002059438 xrpz:InitialSeedSharesMember xrpz:FranklinXRPETFMember 2025-11-18 2025-11-18 0002059438 xrpz:SeedCreationUnitsMember xrpz:FranklinXRPETFMember 2025-11-18 0002059438 xrpz:SeedCreationUnitsMember xrpz:FranklinXRPETFMember 2025-11-18 2025-11-18 0002059438 xrpz:FranklinXRPETFMember 2025-11-19 2025-11-19 0002059438 xrpz:FranklinXRPETFMember 2025-11-19 0002059438 2026-01-01 2026-03-31 0002059438 srt:MaximumMember 2025-11-24 2026-03-31 0002059438 xrpz:FrankinResourcesIncMember xrpz:SponsorMember 2026-03-31 0002059438 2025-03-31 0002059438 us-gaap:SubsequentEventMember 2026-04-01 2026-05-31 0002059438 xrpz:FranklinXRPETFMember 2025-04-01 2026-03-31 0002059438 srt:MaximumMember xrpz:FranklinXRPETFMember 2025-11-24 2026-03-31 0002059438 xrpz:FrankinResourcesIncMember xrpz:SponsorMember xrpz:FranklinXRPETFMember 2026-03-31 0002059438 xrpz:FranklinXRPETFMember 2025-03-31 0002059438 us-gaap:SubsequentEventMember xrpz:FranklinXRPETFMember 2026-04-01 2026-05-31 iso4217:USD shares iso4217:USD shares xrpz:XRP pure xrpz:CreationUnits iso4217:USD compsci:item xrpz:Segment 10-K true 2026-03-31 --03-31 2026 false 001-42961 FRANKLIN XRP TRUST DE 39-6821845 One Franklin Parkway San Mateo CA 94403 650 312-2000 Franklin XRP ETF Shares XRPZ NYSEArca No No Yes Yes Non-accelerated Filer true true false false false false 0 19600000 <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">Cybersecurity Risk Management Strategy and Governance Overview</span> </div><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust and the Fund do not have any officers, directors or employees. The Sponsor is responsible for the oversight and overall management of the Trust and the Fund. The Sponsor is a wholly owned subsidiary of Franklin Resources, Inc. (“FRI”). FRI maintains global, firm-wide policies and procedures governing matters relating to crisis management, corporate continuity, business continuity planning and disaster recovery, enterprise business resilience, and corresponding risk mitigation processes and systems in these areas (collectively referred to as the “Global Corporate Continuity Program”). </div><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Global Corporate Continuity Program is generally overseen by the Business Recovery Governance Committee (“BRGC”). BRGC has developed certain policies and principles in implementing the program. The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. In line with the Global Corporate Continuity Program, the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. As appropriate, the Sponsor or its delegate will coordinate with FRI’s relevant risk management and disaster recovery-related committees to review risk monitoring and mitigation strategies as contemplated under the Global Corporate Continuity Program at least annually, and more often if there are significant internal or external changes affecting these risks as pertains to the Sponsor’s business and its Business Continuity Plan. </div><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> FRI has adopted the National Institute of Standards and Technology’s (“NIST”) cybersecurity framework as its security outline. The program is reviewed annually. Using the NIST framework as a guide, FRI’s cybersecurity program is organized around the following program domains: </div><div style="text-indent: -26.3pt; padding-left: 63pt;"> <div style="float: left; width: 26.3pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> • </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Identify critical assets, data, systems and capabilities, cybersecurity strategy and governing elements, threats and cybersecurity risks </div> </div><div style="text-indent: -26pt; padding-left: 63pt;"> <div style="float: left; width: 26pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> • </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Protect assets (data, systems, networks, personnel, etc.) from external or internal malicious actors and failed practices </div> </div><div style="text-indent: -26.05pt; padding-left: 63pt;"> <div style="float: left; width: 26.05pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> • </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Detect anomalies and security events through environments monitoring, analysis, remediation, and reporting. Engage outside vendors to periodically test the network infrastructure and software applications against known vulnerabilities and to ensure the use of a best practice security program </div> </div><div style="text-indent: -26.05pt; padding-left: 63pt;"> <div style="float: left; width: 26.05pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> • </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Respond to incidents regardless of source or causality </div> </div><div style="text-indent: -26.05pt; padding-left: 63pt;"> <div style="float: left; width: 26.05pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> • </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Recover through planning, improvements and communications (external and internal)</div> </div><div style="margin: 0in 0in 0in 63pt; text-indent: -27pt; line-height: normal; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">•<span style="mso-tab-count:1">         </span>Conduct after-action evaluation to identify what went well, what did not go well and improve FRI’s systems after an issue</div> FRI maintains global, firm-wide policies and procedures governing matters relating to crisis management, corporate continuity, business continuity planning and disaster recovery, enterprise business resilience, and corresponding risk mitigation processes and systems in these areas (collectively referred to as the “Global Corporate Continuity Program”). true <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Global Corporate Continuity Program is generally overseen by the Business Recovery Governance Committee (“BRGC”). BRGC has developed certain policies and principles in implementing the program. The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. In line with the Global Corporate Continuity Program, the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. As appropriate, the Sponsor or its delegate will coordinate with FRI’s relevant risk management and disaster recovery-related committees to review risk monitoring and mitigation strategies as contemplated under the Global Corporate Continuity Program at least annually, and more often if there are significant internal or external changes affecting these risks as pertains to the Sponsor’s business and its Business Continuity Plan. </div> The Global Corporate Continuity Program is generally overseen by the Business Recovery Governance Committee (“BRGC”). The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. The executive officers of the Sponsor perform certain functions with respect to the Trust and the Fund that, if the Trust or the Fund had directors or executive officers, would typically be performed by them, including receiving reports from the BRGC regarding the Global Corporate Continuity Program. In line with the Global Corporate Continuity Program, the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. the Sponsor or its delegate: (1) regularly conducts a business impact analysis; (2) develops, exercises and maintains a viable and actionable Business Continuity Plan specifically tailored to the Sponsor in light of the nature and scope of its business; and (3) completes annual testing of the Business Continuity Plan. Material exceptions to this policy and risk events and related mitigation/corrective measures are reported to the Sponsor’s Governance Oversight Committee. true true true true false false false false false 238 PricewaterhouseCoopers LLP San Francisco, California 215061670 215061670 0 0 215061670 14700000 14700000 14.63 322149692 322149692 0 0 159659740.0158 322149692 215061670 1 159659740.0158 322149692 215061670 1 0 0 215061670 1 142056 142056 0 0 -1632673 -107303893 -108936566 -108936566 -9.11 -108936566 161156892 4457244 -1632673 -107303893 0 -156699648 161156892 4457244 156699648 0 0 0 -173999149 9140640 173999149 -9140640 2440079 0 -1632673 -107303893 -108936566 335156041 13597884 321558157 215061670 4000 4000 25 25 100000 100000 100000 100000 2 2 100000 100000 543060.34 543060.34 10.86 10.86 1086120.68 1086120.68 1086120.68 1086120.68 2.0458 2.0458 2221985.69 2221985.69 1086120.68 1086120.68 <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> 1. ORGANIZATION </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Franklin XRP Trust (the “Trust”) was formed as a Delaware statutory trust on February 28, <span style="-sec-ix-hidden: hidden-fact-4"><span style="-sec-ix-hidden: hidden-fact-5">2025</span></span> and is governed by the provisions of an Amended and Restated Agreement and Declaration of Trust executed as of October 1, 2025 (the “Declaration of Trust”). The Trust, as registrant, is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not a commodity pool for purposes of the Commodity Exchange Act (“CEA”). The accompanying combined financial statements relate to the Trust, as registrant, and the one series that it currently offers, the Franklin XRP ETF (the “Fund”), presented on a combined basis. Separate, series-level financial statements are provided for the Fund in another section of this report. The Trust had no operations prior to the commencement of operations of the Fund on November 24, 2025, other than matters relating to its organization and the registration of the Fund under the Securities Act of 1933, as amended (the “Securities Act”). The Sponsor of the Trust and the Fund (the “Sponsor”) is Franklin Holdings, LLC. The Sponsor is a Delaware limited liability company formed on July 21, 2021. The Sponsor is not subject to regulation by the U.S. Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator or a commodity trading advisor with respect to the Fund. The Fund issues shares (the “Shares”), which represent units of fractional undivided beneficial interest in and ownership of the Fund. The Shares of the Fund are listed on the NYSE Arca, Inc. (the “Exchange”). The Shares were first listed for trading and the Fund commenced operations on November 24, 2025. </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund seeks to reflect generally the performance of the price of XRP before payment of the Fund's expenses and liabilities. The Shares are intended to offer a convenient means of making an investment similar to an investment in XRP relative to acquiring, holding and trading XRP directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove obstacles associated with the complexities and operational burdens involved in a direct investment in XRP by providing an investment with a value that reflects the price of the XRP owned by the Fund at such time, less the Fund's expenses and liabilities. The Fund is not a proxy for a direct investment in XRP. Rather, the Shares are intended to provide a cost-effective alternative means of obtaining investment exposure through the securities markets that is similar to an investment in XRP. The Fund is a passive investment vehicle and is not a leveraged product. The Sponsor does not actively manage the XRP held by the Fund. </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, or “BNYM,” is the Fund’s Administrator (the “Administrator”) and Transfer Agent (the “Transfer Agent”). BNYM also serves as the custodian of the Fund’s cash (the “Cash Custodian”). The Administrator is generally responsible for the day-to-day administration of the Fund, including the calculation of the Fund’s net asset value (“NAV”) per Share. The XRP Custodian is responsible for safekeeping the XRP owned by the Fund. The XRP Custodian is Coinbase Custody Trust Company, LLC (“Coinbase Custody”). Coinbase Inc., an affiliate of the XRP Custodian, is the Fund’s Prime Broker. CSC Delaware Trust Company, a subsidiary of the Corporation Service Company (the “Trustee”), is the sole trustee of the Trust. Franklin Distributors, LLC is the marketing agent of the Fund (the “Marketing Agent”). </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund issues and redeems Shares only to certain eligible financial institutions called Authorized Participants and only in one or more blocks of 50,000 Shares (“Creation Units”). Creation Units are directly redeemable only by Authorized Participants. Creation Units are issued and redeemed in exchange for XRP and/or cash. The Shares are listed and traded on the Exchange under the ticker symbol “XRPZ.” The market price of the Shares may be different than the Fund’s NAV per Share. The Fund issues and redeems Shares in Creation Units on a continuous basis at the applicable NAV per Share on the transaction order date. Except when aggregated in Creation Units, the Shares are not redeemable securities. </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust is an “emerging growth company” as that term is defined in the Jumpstart Our Business Startups Act ("JOBS Act"), subject to reduced public company reporting requirements under U.S. federal securities laws. </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The accompanying combined financial statements have been prepared on behalf of the Trust, as registrant, combined with its one currently offered series, the Fund, and for the Fund separately (included below in a separate section of this report). </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The fiscal year of the Trust and the Fund is March 31st. </div> 50000 4000 25 100000 100000 2 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> 2. SIGNIFICANT ACCOUNTING POLICIES </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management of the Sponsor makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates. </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The accompanying audited financial statements were prepared in accordance with GAAP for financial information and with the instructions for Form 10-K and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The following is a summary of significant accounting policies followed by the Trust and the Fund. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.1. Basis of Presentation</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The financial statements are presented for the Trust, as the registrant, combined with the Fund. Financial statements for the Fund presented at the series- level are provided separately in this report. For the period presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the Trust, as the registrant, combined with the Fund. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.2. Calculation of NAV and NAV per Share</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the XRP held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the Index is unreliable. The CME CF XRP-Dollar Reference Rate – New York Variant for the XRP – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the XRP held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the NYSE Arca, Inc. is closed for regular trading. The Trust’s periodic financial statements may not utilize this net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.3. Valuation of XRP</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Trust’s financial statements are prepared in accordance with GAAP for annual financial information. XRP is priced at 11:59:59 PM ET. The Trust determines the fair value of XRP based on the price provided by the XRP market that the Trust considers its “Principal Market” as of 11:59:59 PM ET on the valuation date. This fair value price is referred to as “Principal Market Price”. With respect to the Fund’s XRP holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for XRP as of the Fund’s financial statement measurement date</span><span style="color: rgb(32, 37, 41);">.</span></div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="color: rgb(32, 37, 41);">ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are:</span> </div> <div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;</span> </div> <div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 2: 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; and</span> </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments.</span> </div> <div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">As of March 31, 2026, the value of the XRP held by the Fund was categorized as Level 1</span>. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.4. Fees, Expenses, and Realized Gains (Losses)</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and XRP Custodian, collectively) and the Trustee, Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs.</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">XRP transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of XRP are determined on a specific identification basis and recognized in the Combined Statement of Operations in the period in which the sale or disposition occurs.</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. 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. The Fund will sell XRP as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any XRP Ledger fees or other similar transaction fees, in connection with any sales of XRP necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any XRP Ledger fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period November 24, 2025 (Date of commencement of operations) to March 31, 2026, the Fund recognized the Sponsor’s Fee of $142,056, less waiver and reimbursement of $142,056, the net Sponsor's fee payable for the period post waiver and reimbursement is $0.</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Sponsor is not required to pay any extraordinary or non-routine expenses. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, XRP Ledger fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the XRP Ledger, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, XRP Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. Because the Fund does not have any income, it will need to sell XRP to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of XRP held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell XRP to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of XRP represented by each Share.</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">There have been no extraordinary or non-routine expenses during the period presented.</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.5. Organizational and Offering Costs</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust’s and the Fund’s organizational and offering costs were borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor may not seek reimbursement or otherwise require the Fund, the Trust, the Trustee or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.6. Income Taxes</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gains, losses, and expenses will “flow through” to the Shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.7. Creation and Redemption of Shares</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of XRP and/or cash as determined by the Administrator on each day that NYSE Arca, Inc. is open for regular trading. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For in‑kind creation transactions, Authorized Participants will deliver to the Fund the amount of XRP attributable to the Creation Unit(s) being created, as determined by the Administrator, together with applicable transaction fees, costs and adjustments. For creation transactions conducted in cash, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of XRP represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions conducted in cash, the Sponsor will arrange for the XRP represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of XRP has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the XRP Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of XRP and the trading price of the Shares on the NYSE Arca, Inc. at the time of the offer. Shares offered at different times may have different offering prices. Prior to the commencement of the Fund’s investment operations on November 24, 2025, there was no public market for the Shares. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Changes in the Shares for the period from November 24, 2025 (Date of commencement of operations) to <span style="color: rgb(0, 0, 0);">March 31, 2026*</span> are as follows: </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <table cellpadding="0" style="line-height: 115%; border-collapse: collapse; width: 100%; font-size: 10pt; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Shares</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount^{^}</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">100,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,224,208</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr style="mso-yfti-irow:2;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Creation of Shares</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">7,500,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Creation of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">8,000,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Redemption of Shares</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(300,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Redemption of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(600,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">14,700,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">323,782,365</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ^ </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.1. Basis of Presentation</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The financial statements are presented for the Trust, as the registrant, combined with the Fund. Financial statements for the Fund presented at the series- level are provided separately in this report. For the period presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the Trust, as the registrant, combined with the Fund. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.2. Calculation of NAV and NAV per Share</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the XRP held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the Index is unreliable. The CME CF XRP-Dollar Reference Rate – New York Variant for the XRP – U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the XRP held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the NYSE Arca, Inc. is closed for regular trading. The Trust’s periodic financial statements may not utilize this net asset value of the Trust to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.3. Valuation of XRP</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Trust’s financial statements are prepared in accordance with GAAP for annual financial information. XRP is priced at 11:59:59 PM ET. The Trust determines the fair value of XRP based on the price provided by the XRP market that the Trust considers its “Principal Market” as of 11:59:59 PM ET on the valuation date. This fair value price is referred to as “Principal Market Price”. With respect to the Fund’s XRP holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for XRP as of the Fund’s financial statement measurement date</span><span style="color: rgb(32, 37, 41);">.</span></div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="color: rgb(32, 37, 41);">ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are:</span> </div><div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities;</span> </div><div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 2: 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; and</span> </div><div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments.</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">As of March 31, 2026, the value of the XRP held by the Fund was categorized as Level 1</span>. </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.4. Fees, Expenses, and Realized Gains (Losses)</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and XRP Custodian, collectively) and the Trustee, Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs.</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">XRP transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of XRP are determined on a specific identification basis and recognized in the Combined Statement of Operations in the period in which the sale or disposition occurs.</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. 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. The Fund will sell XRP as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any XRP Ledger fees or other similar transaction fees, in connection with any sales of XRP necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any XRP Ledger fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period November 24, 2025 (Date of commencement of operations) to March 31, 2026, the Fund recognized the Sponsor’s Fee of $142,056, less waiver and reimbursement of $142,056, the net Sponsor's fee payable for the period post waiver and reimbursement is $0.</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">The Sponsor is not required to pay any extraordinary or non-routine expenses. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, XRP Ledger fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the XRP Ledger, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, XRP Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. Because the Fund does not have any income, it will need to sell XRP to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of XRP held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell XRP to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of XRP represented by each Share.</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(34, 31, 31);">There have been no extraordinary or non-routine expenses during the period presented.</span> </div> 500000 0.0019 0.0019 5000000000 142056 142056 0 500000 500000 0 <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.5. Organizational and Offering Costs</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust’s and the Fund’s organizational and offering costs were borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor may not seek reimbursement or otherwise require the Fund, the Trust, the Trustee or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.6. Income Taxes</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gains, losses, and expenses will “flow through” to the Shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026, and does not believe that there are any uncertain tax positions that require recognition of a tax liability. </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">2.7. Creation and Redemption of Shares</span> </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of XRP and/or cash as determined by the Administrator on each day that NYSE Arca, Inc. is open for regular trading. </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For in‑kind creation transactions, Authorized Participants will deliver to the Fund the amount of XRP attributable to the Creation Unit(s) being created, as determined by the Administrator, together with applicable transaction fees, costs and adjustments. For creation transactions conducted in cash, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of XRP represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions conducted in cash, the Sponsor will arrange for the XRP represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of XRP has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the XRP Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of XRP and the trading price of the Shares on the NYSE Arca, Inc. at the time of the offer. Shares offered at different times may have different offering prices. Prior to the commencement of the Fund’s investment operations on November 24, 2025, there was no public market for the Shares. </div><div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Changes in the Shares for the period from November 24, 2025 (Date of commencement of operations) to <span style="color: rgb(0, 0, 0);">March 31, 2026*</span> are as follows: </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; width: 100%; font-size: 10pt; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Shares</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount^{^}</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">100,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,224,208</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr style="mso-yfti-irow:2;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Creation of Shares</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">7,500,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Creation of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">8,000,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Redemption of Shares</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(300,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Redemption of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(600,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">14,700,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">323,782,365</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ^ </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Changes in the Shares for the period from November 24, 2025 (Date of commencement of operations) to <span style="color: rgb(0, 0, 0);">March 31, 2026*</span> are as follows: </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <table cellpadding="0" style="line-height: 115%; border-collapse: collapse; width: 100%; font-size: 10pt; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom; text-align: center;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Shares</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount^{^}</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">100,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,224,208</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr style="mso-yfti-irow:2;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Creation of Shares</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">7,500,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Creation of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">8,000,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Redemption of Shares</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(300,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Redemption of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(600,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">14,700,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">323,782,365</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ^ </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> 100000 2224208 7500000 161156892 8000000 173999149 300000 4457244 600000 9140640 14700000 323782365 4000 25 100000 100000 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">3. INVESTMENT IN XRP</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The following represents the changes in quantity of XRP held and the respective fair value during the period from November 24, 2025 (Date of commencement of operations) to <span style="color: rgb(0, 0, 0);">March 31, 2026*</span>:</div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height : 1pt; white-space : nowrap; "> <td style="text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Quantity of XRP</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount in US$</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">1,086,120.6800</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,440,079</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">XRP purchased for the creation of shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">81,459,051.0149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP contributed in-kind for the creation of shares </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">86,889,654.4427</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">XRP sold for the redemption of shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(3,258,362.0400</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP distributed in-kind for the redemption of shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(6,516,724.0830</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Principal on XRP sales to pay expenses</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized gain (loss) from XRP sold for the redemption of shares</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(1,632,673</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in unrealized appreciation (depreciation) on investment in XRP</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(107,303,893</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">159,659,740.0158</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">215,061,670</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025.</div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div> </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The following represents the changes in quantity of XRP held and the respective fair value during the period from November 24, 2025 (Date of commencement of operations) to <span style="color: rgb(0, 0, 0);">March 31, 2026*</span>:</div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height : 1pt; white-space : nowrap; "> <td style="text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Quantity of XRP</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount in US$</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">1,086,120.6800</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,440,079</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">XRP purchased for the creation of shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">81,459,051.0149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP contributed in-kind for the creation of shares </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">86,889,654.4427</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">XRP sold for the redemption of shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(3,258,362.0400</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP distributed in-kind for the redemption of shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(6,516,724.0830</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Principal on XRP sales to pay expenses</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized gain (loss) from XRP sold for the redemption of shares</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(1,632,673</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in unrealized appreciation (depreciation) on investment in XRP</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(107,303,893</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">159,659,740.0158</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">215,061,670</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025.</div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div> </div> 1086120.68 2440079 81459051.0149 161156892 86889654.4427 173999149 3258362.04 4457244 6516724.083 9140640 0 0 -1632673 -107303893 159659740.0158 215061670 4000 25 100000 2 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">4. RELATED PARTIES</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor of the Trust is Franklin Holdings, LLC. The Sponsor is responsible for establishing the Trust and for the registration of the Shares. The Sponsor generally oversees the performance of the Fund’s principal service providers but does not exercise day-to-day oversight over such service providers. The Sponsor, with assistance and support from the Administrator, is responsible for preparing and filing periodic reports on behalf of the Trust and the Fund with the SEC and will provide any required certification for such reports. The Sponsor has designated the independent registered public accounting firm of the Trust on behalf of the Fund and may from time to time employ legal counsel for the Fund. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Franklin Distributors, LLC serves as the Marketing Agent of the Fund. The Sponsor and the Marketing Agent are affiliates, and each is considered to be a related party to the Trust and the Fund. Franklin Resources, Inc. (“FRI”) is the ultimate parent company of the Sponsor and the Marketing Agent. FRI is the holding company for various subsidiaries that together are referred to as Franklin Templeton. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor is a related party of the Trust and the Fund. The Fund pays the Sponsor a unitary fee for services performed pursuant to the Sponsor Agreement. The Marketing Agent is an affiliate of the Sponsor. Expenses payable to the Marketing Agent, if any, are paid by the Sponsor from the Sponsor’s fee and are not paid by the Fund. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust also considers Franklin Resources, Inc., the ultimate parent company of the Sponsor, to be a related party of the Trust and the Fund. As of March 31, 2026, 70,000 of the outstanding shares of the Fund were held by Franklin Resources, Inc. in its capacity as the Seed Capital Investor. </div> 70000 <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">5. CONCENTRATION OF RISK</span> </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; margin-left: 0pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund holds only XRP and cash, 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 Fund. The trading prices of XRP have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of XRP, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of XRP and the Shares may include an increase in the global XRP supply or a decrease in global XRP demand; market conditions of, and overall sentiment towards, the digital assets and blockchain technology industry; trading activity on digital asset platforms, which, in many cases, are largely unregulated or subject to regulation by a relevant jurisdiction but potentially non-compliant with such regulations or may be subject to manipulation; the adoption of XRP as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the XRP Ledger, and their ability to meet user demands; manipulative trading activity on digital asset platforms which, in many cases, are largely unregulated and substantially less regulated relative to securities markets; and forks in the XRP Ledger, among other things. </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">6. COMBINED FINANCIAL HIGHLIGHTS</span></div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="white-space: nowrap; width: 1%;" valign="top"> </td><td colspan="2" style="white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">For the period November 24,</b></div> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal"><span style="mso-spacerun:yes"> </span>2025 (Date of commencement of </b></div> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">operations) through</b></div> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">March 31, 2026*</b></div> </td><td style="white-space: nowrap; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:1;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, beginning of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; vertical-align: bottom; border-bottom: 2px solid black;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; vertical-align: bottom; border-bottom: 2px solid black;" valign="top">24.40</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-bottom: 2px solid transparent;" valign="top"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="mso-yfti-irow:3;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss^(b)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top"> -</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized and unrealized gain (loss) on investment in XRP^(c)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">) </td> </tr> <tr style="mso-yfti-irow:5;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in net assets from operations</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, end of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-bottom: 2px solid black;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; border-bottom: 2px solid black;" valign="top">14.63</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-bottom: 2px solid transparent;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:7;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Total return, at net asset value^(d)(e)</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">(40.04</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">)%</td> </tr> <tr style="mso-yfti-irow:9;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Ratio to average net assets^(f)</b></div> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:11;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">%</td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Gross expenses</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">0.19</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">%</td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net expenses^(g)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">%</td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(0, 0, 0); font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (a) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (b) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculated using average Shares outstanding. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (c) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investments for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (d) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculation based on the change in net asset value of a Share during the period. Total return for periods of less than a year are not annualized. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (e) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (f) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Annualized. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (g) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For the period from November 24, 2025 to March 31, 2026, the Sponsor waived the entire Sponsor's Fee. 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. </div> </div> <table cellpadding="0" style="line-height: 115%; border-collapse: collapse; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="white-space: nowrap; width: 1%;" valign="top"> </td><td colspan="2" style="white-space: nowrap; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); text-align: center;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">For the period November 24,</b></div> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal"><span style="mso-spacerun:yes"> </span>2025 (Date of commencement of </b></div> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">operations) through</b></div> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">March 31, 2026*</b></div> </td><td style="white-space: nowrap; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:1;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, beginning of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%; border-bottom: 2px solid transparent;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; vertical-align: bottom; border-bottom: 2px solid black;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; vertical-align: bottom; border-bottom: 2px solid black;" valign="top">24.40</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-bottom: 2px solid transparent;" valign="top"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="mso-yfti-irow:3;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss^(b)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top"> -</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized and unrealized gain (loss) on investment in XRP^(c)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">) </td> </tr> <tr style="mso-yfti-irow:5;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in net assets from operations</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, end of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-bottom: 2px solid black;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right; border-bottom: 2px solid black;" valign="top">14.63</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left; border-bottom: 2px solid transparent;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:7;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Total return, at net asset value^(d)(e)</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">(40.04</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">)%</td> </tr> <tr style="mso-yfti-irow:9;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Ratio to average net assets^(f)</b></div> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:11;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">%</td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Gross expenses</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">0.19</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">%</td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net expenses^(g)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; width: 9%; text-align: right;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; width: 1%; text-align: left;" valign="top">%</td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(0, 0, 0); font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (a) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (b) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculated using average Shares outstanding. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (c) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investments for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (d) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculation based on the change in net asset value of a Share during the period. Total return for periods of less than a year are not annualized. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (e) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (f) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Annualized. </div> </div> <div style="text-indent: -18pt; padding-left: 18pt;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (g) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For the period from November 24, 2025 to March 31, 2026, the Sponsor waived the entire Sponsor's Fee. 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. </div> </div> 24.4 0 -9.77 -9.77 14.63 -0.4004 0 0.0019 0 4000 25 100000 100000 2 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 5000000000 <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">7. COMMITMENTS AND CONTINGENCIES</span> </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> In the normal course of business, the Trust, on behalf of the Fund, may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">8. INDEMNIFICATION</span> </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Under the Trust’s organizational documents, the Sponsor and its shareholders, members, directors, affiliates, officers, employees and subsidiaries are indemnified by the Trust against certain liabilities. The Fund has also agreed to indemnify certain of its other service providers, including the Administrator, the Marketing Agent, the Custodians and the Trustee (including its officers, affiliates, directors, employees, and agents), for certain liabilities incurred by such parties in connection with their respective agreements to provide services for the Fund. </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any XRP or other assets of the Fund or the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. </div> <div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">9. OPERATING SEGMENTS</span> </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund, which is the sole series of the Trust, and the Trust operate as a <span style="-sec-ix-hidden: hidden-fact-6">single</span> operating segment, which is an investment portfolio. Executive officers of the Fund’s Sponsor perform the functions of the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements. </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Combined Statement of Assets and Liabilities and the Combined Statement of Operations, along with the related Notes to the Combined Financial Statements. The Combined Schedule of Investments provides details of the Fund’s investments that generate returns such as realized and unrealized gains or losses. Performance metrics and expense ratios are disclosed in the Combined Financial Highlights. </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-weight: bold;">10. SUBSEQUENT EVENTS</span> </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div> <div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust and the Fund have evaluated subsequent events through the issuance of the financial statements and determined that no such events have occurred that require disclosure. </div> 215061670 215061670 0 0 215061670 14700000 14700000 14.63 159659740.0158 322149692 215061670 1 159659740.0158 322149692 215061670 1 0 0 215061670 1 142056 142056 0 0 -1632673 -107303893 -108936566 -108936566 -9.11 -108936566 161156892 4457244 -1632673 -107303893 0 -156699648 161156892 4457244 156699648 0 0 0 -173999149 9140640 173999149 -9140640 2440079 0 -1632673 -107303893 -108936566 335156041 13597884 321558157 215061670 <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="font-weight: 700; letter-spacing: normal; text-indent: -13.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">1. ORGANIZATION</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Franklin XRP Trust (the “Trust”) was formed as a Delaware statutory trust on February 28, <span style="-sec-ix-hidden: hidden-fact-7"><span style="-sec-ix-hidden: hidden-fact-8">2025</span></span> and is governed by the provisions of an Amended and Restated Agreement and Declaration of Trust executed as of October 1, 2025 (the “Declaration of Trust”). The Trust, as registrant, is not registered as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and is not a commodity pool for purposes of the Commodity Exchange Act (“CEA”). The accompanying financial statements relate to the one series that the Trust currently offers, the Franklin XRP ETF (the “Fund”). The Trust had no operations prior to the commencement of operations of the Fund on November 24, 2025, other than matters relating to its organization and the registration of the Fund under the Securities Act of 1933, as amended (the “Securities Act”). The Sponsor of the Trust and the Fund (the “Sponsor”) is Franklin Holdings, LLC. The Sponsor is a Delaware limited liability company formed on July 21, 2021. The Sponsor is not subject to regulation by the U.S. Commodity Futures Trading Commission (“CFTC”) as a commodity pool operator or a commodity trading advisor with respect to the Fund. The Fund issues shares (the “Shares”), which represent units of fractional undivided beneficial interest in and ownership of the Fund. The Shares of the Fund are listed on the NYSE Arca, Inc. (the “Exchange”). The Shares were first listed for trading and the Fund commenced operations on November 24, 2025. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund seeks to reflect generally the performance of the price of XRP before payment of the Fund's expenses and liabilities. The Shares are intended to offer a convenient means of making an investment similar to an investment in XRP relative to acquiring, holding and trading XRP directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove obstacles associated with the complexities and operational burdens involved in a direct investment in XRP by providing an investment with a value that reflects the price of the XRP owned by the Fund at such time, less the Fund's expenses and liabilities. The Fund is not a proxy for a direct investment in XRP. Rather, the Shares are intended to provide a cost-effective alternative means of obtaining investment exposure through the securities markets that is similar to an investment in XRP. The Fund is a passive investment vehicle and is not a leveraged product. The Sponsor does not actively manage the XRP held by the Fund. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> BNY Mellon Asset Servicing, a division of The Bank of New York Mellon, or “BNYM,” is the Fund’s Administrator (the “Administrator”) and Transfer Agent (the “Transfer Agent”). BNYM also serves as the custodian of the Fund’s cash (the “Cash Custodian”). The Administrator is generally responsible for the day-to-day administration of the Fund, including the calculation of the Fund’s net asset value (“NAV”) per Share. The XRP Custodian is responsible for safekeeping the XRP owned by the Fund. The XRP Custodian is Coinbase Custody Trust Company, LLC (“Coinbase Custody”). Coinbase Inc., an affiliate of the XRP Custodian, is the Fund’s Prime Broker. CSC Delaware Trust Company, a subsidiary of the Corporation Service Company (the “Trustee”), is the sole trustee of the Trust. Franklin Distributors, LLC is the marketing agent of the Fund (the “Marketing Agent”). </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund issues and redeems Shares only to certain eligible financial institutions called Authorized Participants and only in one or more blocks of 50,000 Shares (“Creation Units”). Creation Units are directly redeemable only by Authorized Participants. Creation Units are issued and redeemed in exchange for XRP and/or cash. The Shares are listed and traded on the Exchange under the ticker symbol “XRPZ.” The market price of the Shares may be different than the Fund’s NAV per Share. The Fund issues and redeems Shares in Creation Units on a continuous basis at the applicable NAV per Share on the transaction order date. Except when aggregated in Creation Units, the Shares are not redeemable securities. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund is an “emerging growth company” as that term is defined in the Jumpstart Our Business Startups Act ("JOBS Act"), subject to reduced public company reporting requirements under U.S. federal securities laws. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The fiscal year of the Trust and the Fund is March 31st. </div> 50000 4000 25 100000 100000 2 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2. SIGNIFICANT ACCOUNTING POLICIES</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management of the Sponsor makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The accompanying audited financial statements were prepared in accordance with GAAP for financial information and with the instructions for Form 10-K and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The following is a summary of significant accounting policies followed by the Trust and the Fund. </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.1. Basis of Presentation</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The Sponsor has determined that the Fund falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services— Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The financial statements are presented for the Fund, which is the sole series of the Trust. Financial statements for the Trust, as the registrant, combined with the Fund are provided separately in this report. For the period presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the Fund, which is the sole series of the Trust. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.0667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.2. Calculation of NAV and NAV per Share</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the XRP held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the Index is unreliable. The CME CF XRP-Dollar Reference Rate—New York Variant for the XRP—U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the XRP held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the NYSE Arca, Inc. is closed for regular trading. The Fund’s periodic financial statements may not utilize this net asset value of the Fund to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.0667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.3. Valuation of XRP</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund’s financial statements are prepared in accordance with GAAP for annual financial information. XRP is priced at 11:59:59 PM ET. The Fund determines the fair value of XRP based on the price provided by the XRP market that the Fund considers its “Principal Market” as of 11:59:59 PM ET on the valuation date. This fair value price is referred to as "Principal Market Price". With respect to the Fund’s XRP holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for XRP as of the Fund’s financial statement measurement date. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="text-indent: 38px; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 2: 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; and</span> </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="text-indent: 38px; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">As of March 31, 2026, the value of the XRP held by the Fund was categorized as Level 1. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.4. Fees, Expenses, and Realized Gains (Losses)</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and XRP Custodian, collectively) and the Trustee, Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> XRP transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of XRP are determined on a specific identification basis and recognized in the Statement of Operations in the period in which the sale or disposition occurs, respectively. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. 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. The Fund will sell XRP as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any XRP Ledger fees or other similar transaction fees, in connection with any sales of XRP necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any XRP Ledger fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period November 24, 2025 (Date of commencement of operations) to March 31, 2026, the Fund recognized the Sponsor’s Fee of $142,056, less waiver and reimbursement of $142,056, the net Sponsor's fee payable for the period post waiver and reimbursement is $0. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor is not required to pay any extraordinary or non-routine expenses. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, XRP Ledger fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the XRP Ledger, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, XRP Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. Because the Fund does not have any income, it will need to sell XRP to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of XRP held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell XRP to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of XRP represented by each Share. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> There have been no extraordinary or non-routine expenses during the period presented. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.5. Organizational and Offering Costs</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust’s and the Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.6. Income Taxes</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gains, losses, and expenses will “flow through” to the Shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026, and does not believe that there are any uncertain tax positions that require recognition of a tax liability.</div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.7. Creation and Redemption of Shares</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of XRP and/or cash as determined by the Administrator on each day that NYSE Arca, Inc. is open for regular trading. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For in‑kind creation transactions, Authorized Participants will deliver to the Fund the amount of XRP attributable to the Creation Unit(s) being created, as determined by the Administrator, together with applicable transaction fees, costs and adjustments. For creation transactions conducted in cash, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of XRP represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions conducted in cash, the Sponsor will arrange for the XRP represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of XRP has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the XRP Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of XRP and the trading price of the Shares on the NYSE Arca, Inc. at the time of the offer. Shares offered at different times may have different offering prices. Prior to the commencement of the Fund’s investment operations on November 24, 2025, there was no public market for the Shares. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Changes in the Shares for the period from November 24, 2025 (Date of commencement of operations) to March 31, 2026* are as follows: </div><div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; margin-left: auto; margin-right: auto; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Shares</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount^</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">100,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,224,208</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">Creation of Shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">7,500,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Creation of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">8,000,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">Redemption of Shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(300,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Redemption of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(600,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">14,700,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">323,782,365</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ^ </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.1. Basis of Presentation</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">The Sponsor has determined that the Fund falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services— Investment Companies, and has concluded that solely for accounting purposes, the Trust is classified as an Investment Company as defined in ASC 946. The Trust is not registered as an investment company under the Investment Company Act and is not required to register under such act. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The financial statements are presented for the Fund, which is the sole series of the Trust. Financial statements for the Trust, as the registrant, combined with the Fund are provided separately in this report. For the period presented, there were no balances or activity for the Trust except for the Fund’s operations, as its sole series. These notes to the financial statements relate to the Fund, which is the sole series of the Trust. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Fund are enforceable only against the assets of the Fund and not against the assets of the Trust generally or any other series that the Trust may establish. </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.0667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.2. Calculation of NAV and NAV per Share</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has the exclusive authority to determine the Fund’s net asset value (“NAV”). The Sponsor has delegated to the Administrator the responsibility to calculate the NAV of the Fund, based on a pricing source selected by the Sponsor. In determining the Fund’s NAV, the Administrator generally will value the XRP held by the Fund based on the Index, unless the Sponsor in its sole discretion determines that the Index is unreliable. The CME CF XRP-Dollar Reference Rate—New York Variant for the XRP—U.S. Dollar trading pair (the “CF Benchmarks Index”) shall constitute the Index, unless the CF Benchmarks Index is not available or the Sponsor in its sole discretion determines the CF Benchmarks Index is unreliable as the Index and therefore determines not to use the CF Benchmarks Index as the Index. If the CF Benchmarks Index is not available or the Sponsor determines, in its sole discretion, that the CF Benchmarks Index is unreliable (referred to herein as a “Fair Value Event”), the Fund’s holdings may be fair valued by the Sponsor. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On each Business Day, as soon as practicable after 4:00 PM Eastern Time (“ET”), the Administrator evaluates the XRP held by the Fund as reflected by the CF Benchmarks Index and determines the NAV of the Fund. For purposes of making these calculations, a Business Day means any day other than a day when the NYSE Arca, Inc. is closed for regular trading. The Fund’s periodic financial statements may not utilize this net asset value of the Fund to the extent the methodology used to calculate the Index is deemed not to be consistent with GAAP </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.0667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.3. Valuation of XRP</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund’s financial statements are prepared in accordance with GAAP for annual financial information. XRP is priced at 11:59:59 PM ET. The Fund determines the fair value of XRP based on the price provided by the XRP market that the Fund considers its “Principal Market” as of 11:59:59 PM ET on the valuation date. This fair value price is referred to as "Principal Market Price". With respect to the Fund’s XRP holdings, the Trust follows the provisions of the Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and Disclosures” (“ASC Topic 820”) and utilizes an exchange-traded price from the Fund’s principal market (or in the absence of a principal market, the most advantageous market) for XRP as of the Fund’s financial statement measurement date. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ASC 820 established a hierarchy that prioritized inputs to valuation techniques used to measure fair value. The three levels of inputs are: </div><div style="text-indent: 38px; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities; </div><div style="text-align: justify; margin-left: 28.3pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="color: rgb(32, 37, 41);">Level 2: 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; and</span> </div><div style="text-indent: 38px; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Level 3: Inputs that are unobservable for the asset or liability, including the Fund’s assumptions used in determining the fair value of investments. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">As of March 31, 2026, the value of the XRP held by the Fund was categorized as Level 1. </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.4. Fees, Expenses, and Realized Gains (Losses)</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund’s only ordinary recurring expense is the Sponsor’s fee. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the ordinary fees and expenses incurred by the Fund, including but not limited to the following: fees charged by the Administrator, the Marketing Agent, the Custodians (the Cash Custodian and XRP Custodian, collectively) and the Trustee, Exchange listing fees, typical maintenance and transaction fees of the DTC, SEC registration fees, printing and mailing costs, tax reporting fees, audit fees, license fees and expenses, and up to $500,000 per annum in ordinary legal fees and expenses. The Sponsor paid the costs of the Fund’s organization and the initial offering costs and will not seek reimbursement of such costs. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> XRP transactions are accounted for on a trade date basis. Realized gains or losses from the sale or disposition of XRP are determined on a specific identification basis and recognized in the Statement of Operations in the period in which the sale or disposition occurs, respectively. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor’s fee is accrued daily at an annualized rate equal to 0.19% (i.e., 0.19%/365 days) of the net asset value of the Fund and is payable at least quarterly in arrears in U.S. dollars. The Sponsor may, at its sole discretion and from time to time, waive all or a portion of the Sponsor’s fee for stated periods of time. The Sponsor is under no obligation to waive any portion of its fees and any such waiver shall create no obligation to waive any such fees during any period not covered by the waiver. 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. The Fund will sell XRP as needed to pay the Sponsor’s fee. The Fund bears transaction costs, including any XRP Ledger fees or other similar transaction fees, in connection with any sales of XRP necessary to pay the Sponsor’s fee, as well as other Fund expenses (if any) that are not assumed by the Sponsor (expenses assumed by the Sponsor are specified above). Any XRP Ledger fees and similar transaction fees incurred in connection with the creation or redemption of Creation Units are borne by the Authorized Participant. For the period November 24, 2025 (Date of commencement of operations) to March 31, 2026, the Fund recognized the Sponsor’s Fee of $142,056, less waiver and reimbursement of $142,056, the net Sponsor's fee payable for the period post waiver and reimbursement is $0. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor is not required to pay any extraordinary or non-routine expenses. Extraordinary expenses are fees and expenses which are unexpected or unusual in nature, such as legal claims and liabilities and litigation costs or indemnification or other unanticipated expenses. Extraordinary fees and expenses also include material expenses which are not currently anticipated obligations of the Fund. The Fund is responsible for the payment of such expenses to the extent any such expenses are incurred. Routine operational, administrative and other ordinary expenses are not deemed extraordinary expenses. In addition, the Fund may incur certain other non-recurring expenses that are not assumed by the Sponsor (expenses assumed by the Sponsor are described above), including but not limited to, taxes and governmental charges, any applicable brokerage commissions, XRP Ledger fees and similar transaction fees that qualify as extraordinary or non-routine expenses as described above, financing fees, expenses and costs of any extraordinary services performed by the Sponsor (or any other service provider) on behalf of the Fund to protect the Fund or the interests of Shareholders (including, for example, in connection with any fork of the XRP Ledger, any Incidental Rights and any IR Virtual Currency), any indemnification of the Cash Custodian, XRP Custodian, Prime Broker, Administrator or other agents, service providers or counterparties of the Trust or the Fund and extraordinary legal fees and expenses, including any legal fees and expenses incurred in connection with litigation, regulatory enforcement or investigation matters or legal expenses in excess of $500,000 per year. The Sponsor may determine in its sole discretion to assume legal fees and expenses of the Fund in excess of the $500,000 per annum stipulated in the Sponsor Agreement. To the extent that the Sponsor does not voluntarily assume such fees and expenses, they will be the responsibility of the Fund. Because the Fund does not have any income, it will need to sell XRP to cover the Sponsor’s fee and expenses not assumed by the Sponsor, if any. Fund expenses not assumed by the Sponsor shall accrue daily and be payable by the Fund to the Sponsor at least quarterly in arrears. The Fund may also be subject to other liabilities (for example, as a result of litigation) that have also not been assumed by the Sponsor. The only source of funds to cover those liabilities will be sales of XRP held by the Fund. Even if there are no expenses other than those assumed by the Sponsor, and there are no other liabilities of the Fund, the Fund will still need to sell XRP to pay the Sponsor’s fee. The result of these sales is a decrease in the amount of XRP represented by each Share. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> There have been no extraordinary or non-routine expenses during the period presented. </div> 500000 0.0019 0.0019 5000000000 142056 142056 0 500000 500000 0 <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.5. Organizational and Offering Costs</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust’s and the Fund’s organizational and offering costs are borne by the Sponsor and, as such, are the sole responsibility of the Sponsor. The Sponsor will not seek reimbursement or otherwise require the Fund, the Trust, the Trustee or any Shareholder to assume any liability, duty or obligation in connection with any such organizational and offering costs. </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.6. Income Taxes</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust and the Fund are not subject to United States federal income tax. Instead, the Fund’s income, gains, losses, and expenses will “flow through” to the Shareholders, and the Administrator reports these to the Internal Revenue Service on that basis. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust and the Fund as of March 31, 2026, and does not believe that there are any uncertain tax positions that require recognition of a tax liability.</div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -23.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">2.7. Creation and Redemption of Shares</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund issues and redeems Creation Units on a continuous basis. Creation Units are issued or redeemed in exchange for an amount of XRP and/or cash as determined by the Administrator on each day that NYSE Arca, Inc. is open for regular trading. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For in‑kind creation transactions, Authorized Participants will deliver to the Fund the amount of XRP attributable to the Creation Unit(s) being created, as determined by the Administrator, together with applicable transaction fees, costs and adjustments. For creation transactions conducted in cash, the amount of cash required to be delivered to the Fund will equal the amount of cash needed to purchase the amount of XRP represented by the Creation Unit(s) being created, as calculated by the Administrator, plus applicable fees, costs and adjustments. For redemption transactions conducted in cash, the Sponsor will arrange for the XRP represented by the Creation Unit(s) being redeemed to be sold and the cash proceeds, after applicable fees, costs and adjustments, distributed. No Shares are issued until the corresponding amount of XRP has been received in the Fund’s Trading Balance. Creation Units may be created or redeemed only by Authorized Participants, who pay (1) a transaction fee for each order to create or redeem Creation Units; (2) transfer, processing and other transaction costs charged by the XRP Custodian in connection with the issuance or redemption of Creation Units for such order; and (3) any other expenses, taxes, charges or adjustments. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Creation Units will be sold at a per-Share offering price that will vary depending on, among other things, the price of XRP and the trading price of the Shares on the NYSE Arca, Inc. at the time of the offer. Shares offered at different times may have different offering prices. Prior to the commencement of the Fund’s investment operations on November 24, 2025, there was no public market for the Shares. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Changes in the Shares for the period from November 24, 2025 (Date of commencement of operations) to March 31, 2026* are as follows: </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; margin-left: auto; margin-right: auto; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Shares</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount^</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">100,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,224,208</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">Creation of Shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">7,500,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Creation of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">8,000,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">Redemption of Shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(300,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Redemption of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(600,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">14,700,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">323,782,365</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ^ </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Changes in the Shares for the period from November 24, 2025 (Date of commencement of operations) to March 31, 2026* are as follows: </div><div style="text-align: justify; margin-left: 4.5pt; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; margin-left: auto; margin-right: auto; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt; text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Shares</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount^</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">100,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,224,208</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">Creation of Shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">7,500,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Creation of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">8,000,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">Redemption of Shares</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(300,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">Redemption of Shares in-kind</td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(600,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">14,700,000</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">323,782,365</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> ^ </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div> 100000 2224208 7500000 161156892 8000000 173999149 300000 4457244 600000 9140640 14700000 323782365 4000 25 100000 100000 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">3. INVESTMENT IN XRP</span></div><div style="clear: both; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The following represents the changes in quantity of XRP held and the respective fair value during the period from November 24, 2025 (Date of commencement of operations) to March 31, 2026*: </div><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="height : 1pt; white-space : nowrap; "> <td style="text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Quantity of XRP</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount in US$</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">1,086,120.6800</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,440,079</td><td style="text-align : left; margin : 0in; line-height : normal; width : 1%; " valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">XRP purchased for the creation of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">81,459,051.0149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP contributed in-kind for the creation of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">86,889,654.4427</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">XRP sold for the redemption of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(3,258,362.0400</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP distributed in-kind for the redemption of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(6,516,724.0830</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Principal on XRP sales to pay expenses</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized gain (loss) from XRP sold for the redemption of shares</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(1,632,673</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in unrealized appreciation (depreciation) on investment in XRP</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(107,303,893</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">159,659,740.0158</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">215,061,670</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025.</div> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The following represents the changes in quantity of XRP held and the respective fair value during the period from November 24, 2025 (Date of commencement of operations) to March 31, 2026*: </div><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="line-height: 115%; border-collapse: collapse; font-size: 10pt; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="height: 0px; font-size: 0px;"><td style="width: 76%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 1%;"> </td><td style="width: 9%;"> </td><td style="width: 1%;"> </td></tr><tr style="height : 1pt; white-space : nowrap; "> <td style="text-align: justify;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Quantity of XRP</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> <td style="text-align: center; width: 1%;" valign="top"> </td><td colspan="2" style="text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight:normal">Amount in US$</b></div> </td><td style="text-align: center; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at November 24, 2025 (Date of commencement of operations)</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">1,086,120.6800</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; vertical-align: bottom;" valign="top">2,440,079</td><td style="text-align : left; margin : 0in; line-height : normal; width : 1%; " valign="top"> <span style="font-size: .83em; vertical-align: super;">#</span></td> </tr> <tr> <td style="text-align: justify;" valign="top">XRP purchased for the creation of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">81,459,051.0149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">161,156,892</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP contributed in-kind for the creation of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">86,889,654.4427</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">173,999,149</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr><tr> <td style="text-align: justify;" valign="top">XRP sold for the redemption of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(3,258,362.0400</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(4,457,244</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="background-color: rgb(204, 238, 255);"> <td style="text-align: justify;" valign="top">XRP distributed in-kind for the redemption of shares</td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(6,516,724.0830</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(9,140,640</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr><tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Principal on XRP sales to pay expenses</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized gain (loss) from XRP sold for the redemption of shares</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%;" valign="top">(1,632,673</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt;"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in unrealized appreciation (depreciation) on investment in XRP</div> </td> <td style="text-align: center; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> - </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">(107,303,893</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; text-align: justify;" valign="top"> <div style="margin: 0in; line-height: normal;">Balance at March 31, 2026</div> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> </td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">159,659,740.0158</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> <td style="text-align: justify; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">$</td><td style="height: 1pt; text-align: right; margin: 0in; line-height: normal; width: 9%; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top">215,061,670</td><td style="text-align: left; margin: 0in; line-height: normal; width: 1%;" valign="top"> </td> </tr> </table><div style="text-align: justify; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> # </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025.</div> </div> 1086120.68 2440079 81459051.0149 161156892 86889654.4427 173999149 3258362.04 4457244 6516724.083 9140640 0 0 -1632673 -107303893 159659740.0158 215061670 4000 25 100000 100000 2 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 <div style="clear: both; font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">4. RELATED PARTIES</span></div><div style="clear: both; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor of the Trust is Franklin Holdings, LLC. The Sponsor is responsible for establishing the Trust and for the registration of the Shares. The Sponsor generally oversees the performance of the Fund’s principal service providers but does not exercise day-to-day oversight over such service providers. The Sponsor, with assistance and support from the Administrator, is responsible for preparing and filing periodic reports on behalf of the Trust and the Fund with the SEC and will provide any required certification for such reports. The Sponsor has designated the independent registered public accounting firm of the Trust on behalf of the Fund and may from time to time employ legal counsel for the Fund. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Franklin Distributors, LLC serves as the Marketing Agent of the Fund. The Sponsor and the Marketing Agent are affiliates, and each is considered to be a related party to the Trust and the Fund. Franklin Resources, Inc. (“FRI”) is the ultimate parent company of the Sponsor and the Marketing Agent. FRI is the holding company for various subsidiaries that together are referred to as Franklin Templeton. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor is a related party of the Trust and the Fund. The Fund pays the Sponsor a unitary fee for services performed pursuant to the Sponsor Agreement. The Marketing Agent is an affiliate of the Sponsor. Expenses payable to the Marketing Agent, if any, are paid by the Sponsor from the Sponsor’s fee and are not paid by the Fund. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust also considers Franklin Resources, Inc., the ultimate parent company of the Sponsor, to be a related party of the Trust and the Fund. As of March 31, 2026, 70,000 of the outstanding shares of the Fund were held by Franklin Resources, Inc. in its capacity as the Seed Capital Investor. </div> 70000 <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">5. CONCENTRATION OF RISK</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div> The Fund holds only XRP and cash, 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 Fund. The trading prices of XRP have experienced extreme volatility in recent periods and may continue to fluctuate significantly. Extreme volatility in the future, including substantial, sustained, or rapid declines in the trading prices of XRP, could have a material adverse effect on the value of the Shares and the Shares could lose all or substantially all of their value. Factors adversely impacting the value of XRP and the Shares may include an increase in the global XRP supply or a decrease in global XRP demand; market conditions of, and overall sentiment towards, the digital assets and blockchain technology industry; trading activity on digital asset platforms, which, in many cases, are largely unregulated or subject to regulation by a relevant jurisdiction by potentially non-compliant with such regulations or may be subject to manipulation; the adoption of XRP as a medium of exchange, store-of-value or other consumptive asset and the maintenance and development of the open-source software protocol of the XRP Ledger, and their ability to meet user demands; manipulative trading activity on digital asset platforms which, in many cases, are largely unregulated and substantially less regulated relative to securities markets; and forks in the XRP Ledger, among other things. </div> <div style="text-align: justify; clear: both; font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">6. <span style="letter-spacing: normal; text-align: start; text-indent: -13.2667px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">FINANCIAL HIGHLIGHTS</span> </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><table cellpadding="0" style="vertical-align: super; font-size: 10pt; margin-left: auto; margin-right: 0px; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="white-space: nowrap; width: 1%;" valign="top"> </td><td colspan="2" style="white-space: nowrap; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in;"><b>For the period November 24,</b></div> <div style="margin: 0in;"><b>2025 (Date of commencement of</b></div> <div style="margin: 0in;"><b>operations) through</b></div> <div style="margin: 0in;"><b>March 31, 2026*</b></div> </td><td style="white-space: nowrap; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:1;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, beginning of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; vertical-align: bottom;" valign="top">24.40</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="mso-yfti-irow:3;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss^(b)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">                                 -</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized and unrealized gain (loss) on investment in XRP^(c)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">) </td> </tr> <tr style="mso-yfti-irow:5;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in net assets from operations</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, end of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">14.63</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:7;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Total return, at net asset value^(d)(e)</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">(40.04</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">)%</td> </tr> <tr style="mso-yfti-irow:9;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Ratio to average net assets^(f)</b></div> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:11;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">%</td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Gross expenses</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">0.19</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">%</td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net expenses^(g)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">%</td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (a) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (b) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculated using average Shares outstanding. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (c) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investments for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (d) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculation based on the change in net asset value of a Share during the period. Total return for periods of less than a year are not annualized. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (e) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (f) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Annualized. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (g) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For the period from November 24, 2025 to March 31, 2026, the Sponsor waived the entire Sponsor's Fee. The Sponsor has agreed, for a period through May 31, 2026, to waive the entire Sponsor's Fee on the first $5.0 billion of the Fund's assets. </div> </div> <table cellpadding="0" style="vertical-align: super; font-size: 10pt; margin-left: auto; margin-right: 0px; font-family: &quot;Times New Roman&quot;, Times, serif; width: 100%; border-spacing: 0px;"> <tr style="mso-yfti-irow:0;mso-yfti-firstrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="white-space: nowrap; width: 1%;" valign="top"> </td><td colspan="2" style="white-space: nowrap; text-align: center; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0);" valign="top"> <div style="margin: 0in;"><b>For the period November 24,</b></div> <div style="margin: 0in;"><b>2025 (Date of commencement of</b></div> <div style="margin: 0in;"><b>operations) through</b></div> <div style="margin: 0in;"><b>March 31, 2026*</b></div> </td><td style="white-space: nowrap; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:1;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt; vertical-align: bottom;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, beginning of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%; vertical-align: bottom;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%; vertical-align: bottom;" valign="top">24.40</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> <span style="font-size: .83em; vertical-align: super;">(a)</span></td> </tr> <tr style="mso-yfti-irow:3;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss^(b)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">                                 -</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net realized and unrealized gain (loss) on investment in XRP^(c)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">) </td> </tr> <tr style="mso-yfti-irow:5;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net change in net assets from operations</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 2px; border-style: none none solid; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">(9.77</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">) </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Net asset value per Share, end of period</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 1%;" valign="top">$</td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; border-width: medium medium 4px; border-style: none none double; border-color: currentcolor currentcolor rgb(0, 0, 0); width: 9%;" valign="top">14.63</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:7;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Total return, at net asset value^(d)(e)</b></div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">(40.04</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">)%</td> </tr> <tr style="mso-yfti-irow:9;height:1.0pt"> <td style="height: 1pt;" valign="top"> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;"><b style="mso-bidi-font-weight: normal">Ratio to average net assets^(f)</b></div> </td> <td style="width: 1%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td><td style="height: 1pt; width: 9%;" valign="top"> </td><td style="width: 1%;" valign="top"> </td> </tr> <tr style="mso-yfti-irow:11;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net investment loss</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">%</td> </tr> <tr style="height: 1pt; background-color: rgb(204, 238, 255);"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Gross expenses</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">0.19</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">%</td> </tr> <tr style="mso-yfti-irow:13;mso-yfti-lastrow:yes;height:1.0pt"> <td style="height: 1pt;" valign="top"> <div style="margin: 0in; line-height: normal;">Net expenses^(g)</div> </td> <td style="margin: 0in; line-height: normal; width: 1%;" valign="top"> </td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top"> </td><td style="height: 1pt; margin: 0in; line-height: normal; text-align: right; width: 9%;" valign="top">0.00</td><td style="margin: 0in; line-height: normal; text-align: left; width: 1%;" valign="top">%</td> </tr> </table><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">*</span> </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> <span style="font-style: italic;">No comparative period presented as the Fund’s operations commenced on November 24, 2025.</span> </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (a) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. </div> </div><div style="text-indent: -18pt; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (b) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculated using average Shares outstanding. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (c) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investments for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (d) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Calculation based on the change in net asset value of a Share during the period. Total return for periods of less than a year are not annualized. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (e) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (f) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Annualized. </div> </div><div style="text-indent: -18pt; line-height: 1.23; padding-left: 18pt; font-family: Aptos; clear: both;"> <div style="float: left; width: 18pt; white-space: nowrap; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> (g) </div> <div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For the period from November 24, 2025 to March 31, 2026, the Sponsor waived the entire Sponsor's Fee. 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. </div> </div> 24.4 0 -9.77 -9.77 14.63 -0.4004 0 0.0019 0 4000 25 100000 100000 2 100000 543060.34 10.86 1086120.68 1086120.68 2.0458 2221985.69 1086120.68 5000000000 <div style="clear: both; font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.3333px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">7. COMMITMENTS AND CONTINGENCIES</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> In the normal course of business, the Trust, on behalf of the Fund, may enter into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.3333px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">8. INDEMNIFICATION</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> Under the Trust’s organizational documents, the Sponsor and its shareholders, members, directors, affiliates, officers, employees and subsidiaries are indemnified by the Trust against certain liabilities. The Fund has also agreed to indemnify certain of its other service providers, including the Administrator, the Marketing Agent, the Custodians and the Trustee (including its officers, affiliates, directors, employees, and agents), for certain liabilities incurred by such parties in connection with their respective agreements to provide services for the Fund. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor will not be liable to the Trust, the Trustee or any Shareholder for any action taken or for refraining from taking any action in good faith, or for errors in judgment or for depreciation or loss incurred by reason of the sale of any XRP or other assets of the Fund or the Trust. However, the preceding liability exclusion will not protect the Sponsor against any liability resulting from its own gross negligence, bad faith, or willful misconduct. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Sponsor and each of its shareholders, members, directors, officers, employees, affiliates and subsidiaries will be indemnified by the Trust and held harmless against any losses, liabilities or expenses incurred in the performance of its duties under the Declaration of Trust without gross negligence, bad faith, or willful misconduct. The Sponsor may rely in good faith on any paper, order, notice, list, affidavit, receipt, evaluation, opinion, endorsement, assignment, draft or any other document of any kind prima facie properly executed and submitted to it by the Trustee, the Trustee’s counsel or by any other person for any matters arising under the Declaration of Trust. The Sponsor shall in no event be deemed to have assumed or incurred any liability, duty, or obligation to any Shareholder or to the Trustee other than as expressly provided for in the Declaration of Trust. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any indemnified claim or liability under the Declaration of Trust. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trustee will not be liable or accountable to the Trust or any other person or under any agreement to which the Trust or any series of the Trust is a party, except for the Trustee’s breach of its obligations pursuant to the Declaration of Trust or its own willful misconduct, bad faith or gross negligence. The Trustee and each of the Trustee’s officers, affiliates, directors, employees, and agents will be indemnified by the Trust from and against any losses, claims, taxes, damages, reasonable expenses, and liabilities incurred with respect to the creation, operation or termination of the Trust, the execution, delivery or performance of the Declaration of Trust or the transactions contemplated thereby; provided that the indemnified party acted without willful misconduct, bad faith or gross negligence. </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.3333px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">9. OPERATING SEGMENTS</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Fund, which is the sole series of the Trust, and the Trust operate as a <span style="-sec-ix-hidden: hidden-fact-9">single</span> operating segment, which is an investment portfolio. Executive officers of the Fund’s Sponsor perform the functions of the Chief Operating Decision Maker (CODM), evaluating fund-wide results and performance under a unified investment strategy. The CODM uses these measures to assess fund performance and allocate resources effectively. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements. </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;">  </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Statement of Assets and Liabilities and the Statement of Operations, along with the related Notes to Financial Statements. The Schedule of Investments provides details of the Fund’s investments that generate returns such as realized and unrealized gains or losses. Performance metrics and expense ratios are disclosed in the Financial Highlights. </div> <div style="font-weight: bold; font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"><span style="letter-spacing: normal; text-indent: -13.3333px; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; float: none; display: inline !important;">10. SUBSEQUENT EVENTS</span></div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> </div><div style="font-family: TimesNewRoman, &quot;Times New Roman&quot;, Times, Baskerville, Georgia, serif; font-size: 10pt;"> The Trust and the Fund have evaluated subsequent events through the issuance of the financial statements and determined that no such events have occurred that require disclosure. </div> http://fasb.org/us-gaap/2025#RelatedPartyMember http://fasb.org/us-gaap/2025#RelatedPartyMember 2025 2025 1 2025 2025 1 0002059438 false FY Unlimited Unlimited Cost of investment in XRP: $322,149,692 at March 31, 2026. No par value, unlimited amount authorized. Net increase (decrease) in net assets per Share based on average shares outstanding during the period. On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. Calculated using average Shares outstanding. The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investments for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. Calculation based on the change in net asset value of a Share during the period. Total return for periods of less than a year are not annualized. Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. Annualized. For the period from November 24, 2025 to March 31, 2026, the Sponsor waived the entire Sponsor's Fee. 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. On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. Dollar amount of balance represents the cumulative fair value of creation of shares less the redemption of shares, at the time of the specific creation or redemption. On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025 On October 15, 2025, Franklin Resources Inc. (the “Seed Capital Investor”), an affiliate of the Sponsor, subject to conditions, purchased 4,000 Shares at a per-Share price equal to $25.00 (the “Initial Seed Shares”). Delivery of the Initial Seed Shares was made on October 15, 2025. Total proceeds to the Fund from the sale of the Initial Seed Shares was $100,000. On November 18, 2025, the Initial Seed Shares were redeemed for $100,000 and the Seed Capital Investor purchased two creation units in a cash transaction comprised of a total of 100,000 Shares at a per-Share price based on 543,060.34 XRP per Creation Unit (or 10.86 XRP per Share), for a total of 1,086,120.68 XRP (the "Seed Creation Units"). The cash proceeds to the Fund from the sale of the Seed Creation Units were used by the Fund to purchase 1,086,120.68 XRP at the price of $2.0458 per XRP on November 19, 2025 (exclusive of transaction and other costs incurred in connection with the conversion of the cash proceeds to XRP, which were paid by the Seed Capital Investor). Thus, the ultimate total proceeds to the Fund from the sale of the Seed Creation Units were $2,221,985.69 (an amount representing 1,086,120.68 XRP). Further, the transaction and other costs incurred in connection with the Seed Creation Units were paid by the Seed Capital Investor and not borne by the Fund. The Seed Capital Investor acted as a statutory underwriter with respect to the Seed Creation Units. Shares of the Fund were first listed and began trading on November 24, 2025. Calculated using average Shares outstanding. The amount shown for a share outstanding may not agree with the change in the aggregate gains and losses on investments for the period because of the timing of transactions in the Fund’s shares in relation to fluctuating market values for the Fund’s underlying investment. Calculation based on the change in net asset value of a Share during the period. Total return for periods of less than a year are not annualized. Total Return at NAV is calculated assuming an initial investment made at the NAV at the beginning of the period, and redemption of Shares at NAV on the last day of the period. Total Return at NAV as shown above includes adjustments in accordance with U.S. GAAP. Annualized. For the period from November 24, 2025 to March 31, 2026, the Sponsor waived the entire Sponsor's Fee. 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.