- Canary Capital files final paperwork with the SEC for the first US spot XRP ETF.
- ETF could begin trading on Thursday after Nasdaq certification on Wednesday evening.
The cryptocurrency market is one step away from a major milestone since the investment firm Canary Capital is ready to launch the first spot XRP exchange-traded fund in America. The firm submitted important paperwork to the Securities and Exchange Commission to have its fund ready for the market’s launch on Thursday. This is a watershed moment for XRP investors who have been looking for a way to get regulated exposure through traditional financial markets.
Regulatory Approval Process Nears Completion
On Monday evening, Canary Capital submitted its Form 8A to the securities regulators, signalling an important element in the ETF approval process. According to Eric Balchunas, senior ETF analyst from Bloomberg, the fund could be trading in the next few days, a pattern backed up by the timescale of the recent Hedera ETFs.
This filing is the last hurdle that needs to be cleared from the regulators before Nasdaq itself certifies the listing, which is expected to take place the following day, Wednesday at 5:30 PM ET. Once it is certified, trading could commence when the markets open Thursday morning, unless there are some type of unexpected regulatory issues.
Canary’s offering is distinct from existing XRP investment products due to its structure under the Securities Act of 1933. This structure permits the ETF to hold XRP tokens directly instead of investing through offshore companies, as in other products. Holding the tokens directly gives investors a more transparent exposure to XRP’s price movements.
Canary Capital is unlikely to dominate the spot XRP ETF market for an extended period of time, as eight more firms wait to be approved by the Depository Trust and Clearing Corporation. Well-known players in finance, such as 21Shares, ProShares, Bitwise, Franklin Templeton, and CoinShares, have filed applications for their own products. The recent completion of the government shutdown has removed regulatory bottlenecks, expediting the approval pace for multiple cryptocurrency ETFs.
Market sentiment is becoming more optimistic, with XRP’s price increasing 10% and reaching $2.40 over the previous week. The cryptocurrency community interprets ETF approval as recognition that XRP is now a legitimate and traditional financial asset, which could have encouraged institutional capital that may have previously been turned off by direct crypto token ownership.
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