The financial world is on the brink of a significant milestone as Canary Capital’s spot XRP ETF has cleared its final regulatory hurdle, setting the stage for the first-ever such fund to begin trading in the United States. This development marks a pivotal moment for institutional and retail investors seeking regulated exposure to XRP.
A New Gateway for Institutional XRP Exposure
Canary Capital has successfully navigated the key regulatory steps, filing a Form 8-A with the U.S. Securities and Exchange Commission (SEC) and receiving approval for the ETF to be listed on the Nasdaq exchange under the ticker symbol “XRPC”. This filing was the final procedural step, and with Nasdaq’s certification expected, the fund is poised to launch imminently.
This achievement was made possible through a strategic procedural maneuver. By removing the “delaying amendment” from its initial S-1 registration statement, Canary Capital leveraged an automatic effectiveness mechanism under the Securities Act of 1933. This approach streamlined the approval process, allowing the fund to bypass potential regulatory delays and target a specific launch date.
Inside the Landmark Financial Product
The Canary XRP ETF is structured to provide a straightforward and secure investment vehicle. The fund’s objective is to track the spot price of XRP, using the XRP-USD CCIXber Reference Rate Index as its benchmark. For this management, the fund will charge an annual fee of 0.50%.
To ensure the security of the underlying assets, the ETF will utilize a robust custody solution. The digital asset custodians for the fund are Gemini Trust Company and BitGo Trust Company, while U.S. Bank will serve as the cash custodian. This structure is designed to offer investors peace of mind by combining the efficiency of blockchain assets with the safeguards of traditional finance.
Market Impact and Strategic Implications
The introduction of a spot XRP ETF is expected to have a substantial impact on the market. It offers a regulated pathway for a broader range of investors—from large institutions to everyday individuals—to gain exposure to XRP’s price movements without the complexities of directly holding the cryptocurrency or managing private keys.
Analysts project significant investor interest, with Canary Capital’s CEO, Steven McClurg, predicting that the XRP ETF could see up to $5 billion in inflows within its first month, potentially doubling the initial performance of recent Solana ETFs. This event is seen as a major step in the continued integration of digital assets into the mainstream financial system, following the earlier approvals of Bitcoin and Ethereum spot ETFs.
