The cryptocurrency market is abuzz with the news of the XRP ETF as Canary Funds has made a significant stride by updating its S-1 registration to skip the usual SEC approval process. This bold move not only positions the fund for a possible launch date of November 13, 2025, but also marks a pivotal moment in the evolving regulatory landscape for cryptocurrency investments.
XRP ETF Moves to Auto-Effective Status
By eliminating the SEC-controlled delay clause from its registration filing, Canary Funds has paved the way for the XRP ETF to become automatically effective under Section 8(a) of the Securities Act of 1933. This allows the ETF to go live immediately after the statutory 20-day waiting period, setting the stage for this much-anticipated financial product to enter the market.
The timing couldn’t be more critical, especially as regulatory progress slows down amidst a government shutdown. Although the SEC could exercise its right to delay the launch with new comments or objections, Canary’s decision to take the auto-effective route showcases a growing trend in the ETF space during these uncertain times.
However, the ultimate launch of the XRP ETF hinges on a crucial regulatory approval from Nasdaq. This exchange review is the last hurdle Canary Funds must clear before trading can commence, and market participants are keenly watching for any updates on this timeline.
The ETF will allow investors to gain exposure to XRP held in trust, with operational expenses deducted from the fund’s value, while tracking the CoinDesk XRP CCIXber Reference Rate—a composite index based on data from significant cryptocurrency exchanges. Gemini Trust Company and BitGo Trust Company have been appointed as custodians for the fund’s underlying XRP, adding layers of security and reliability to its operations.
Industry Response and Regulatory Strategy
Analysts within the industry are observing this untested strategy with cautious optimism. Eric Balchunas, a Bloomberg analyst, highlighted that while Canary Funds has chosen a path less traveled—skipping prolonged negotiations with the SEC—it remains to be seen whether this approach could yield the desired results. Canary’s expeditious strategy contrasts sharply with other cryptocurrency ETF applicants, such as those pursuing Solana ETFs, who have opted for more traditional regulatory discussions.
As noted by industry watchers, Eleanor Terrett described Canary’s attempt to bypass the lengthy SEC process as a potential fast-track mechanism, underscoring the urgency many fund managers feel in entering the rapidly evolving ETF market.
The expansion of XRP-related institutional products has also gained momentum, with Evernorth recently launching on Nasdaq under the XRPN ticker after acquiring a sizable $1 billion in XRP. Additionally, T. Rowe Price is making headlines with its own ETF filing that includes a host of cryptocurrencies, including Bitcoin, Ethereum, Solana, and XRP.
As multiple token-based ETFs utilize similar statutory mechanisms, the competitive landscape continues to grow, with Solana, Hedera, and Litecoin ETFs also pursuing auto-effective status. The ripple effect of these developments (pun intended) is expanding the scope of institutional accessibility to cryptocurrency.
With the launch of the XRP ETF on the horizon, if approved, it will not only be a milestone for the use of XRP in institutional investment but also signify a broader acceptance of digital assets by traditional financial markets. All eyes are now on Nasdaq, with the industry eagerly awaiting confirmation of the November 13 target date.
