The U.S. cryptocurrency landscape is on the verge of a potentially historic milestone with the anticipated launch of the first pure spot XRP exchange-traded fund (ETF) by Canary Funds. Pending final approval from Nasdaq, the fund could go live as early as Thursday, marking a significant moment for Ripple, its XRP token, and the broader crypto market.
A New Era for XRP Investment
Canary Funds’ XRP Trust is positioned to become the first ETF in the United States providing direct, one-to-one exposure to XRP, rather than relying on futures contracts or mixed-asset structures. The fund recently filed Form 8-A with the Securities and Exchange Commission (SEC), a procedural step that signals its readiness for trading. According to Bloomberg ETF analyst Eric Balchunas, this filing represents the final administrative hurdle before the fund can launch.
Once Nasdaq certifies the listing, expected by 5:30 p.m. ET on Wednesday, the ETF will become effective, clearing the regulatory path for a Thursday market debut. This approval would allow investors to gain direct exposure to XRP in a regulated vehicle under the Securities Act of 1933, bypassing the complications associated with futures-based or hybrid crypto ETFs.
Institutional Participation and Liquidity Boost
A successful launch could significantly expand XRP’s liquidity base and attract a new wave of institutional investors. Many registered investment advisers have traditionally steered clear of altcoin exposure beyond Bitcoin, citing regulatory uncertainty or operational hurdles. With a regulated spot ETF, advisers would gain a compliant pathway to include XRP in client portfolios, potentially driving substantial inflows into the token.
CoinDesk analysts have noted that Canary’s ETF may also facilitate cleaner price discovery for XRP, offering the market a transparent benchmark for institutional activity. This could act as a crucial test case for whether significant capital will migrate into altcoin-focused products beyond the dominant Bitcoin and Ethereum ETFs.
Comparing Spot vs. Partial Exposure ETFs
While Canary’s ETF aims to provide 100% direct XRP exposure, it is not the first XRP-related ETF in the U.S. market. REX Shares debuted the XRPR ETF under the Investment Company Act of 1940, offering only partial XRP exposure alongside other assets. This structure can result in higher tracking costs and less efficient tax treatment for investors. In contrast, Canary’s product, governed under the Securities Act of 1933, promises full, one-to-one XRP backing held in custody by a regulated trust, making it the first pure-play XRP ETF in the country.
Eleanor Terrett, a prominent industry commentator, highlighted the distinction on social media, noting that while XRPR provided partial exposure, Canary’s offering will consist entirely of XRP, providing a more straightforward investment vehicle with optimal tax efficiency.
Market Context and Timing
The potential ETF launch comes nearly two years after the debut of spot Bitcoin ETFs in January 2024, marking an important expansion of the U.S. crypto ETF market. Spot ether ETFs have since launched, and applications for Solana-based ETFs remain pending, indicating a broader trend toward institutional diversification beyond the two largest cryptocurrencies.
At the time of reporting, XRP traded near $2.48 during Asian morning hours on Wednesday, reflecting a 5% decline over the past 24 hours, in line with a broader market slide. While price fluctuations are typical, the ETF launch represents a long-term structural development that could provide more robust support for XRP by facilitating regulated, institutional participation.
Implications for Ripple and the Broader Crypto Market
Approval of Canary’s XRP ETF would signify a major milestone not only for Ripple but for the wider cryptocurrency ecosystem. It underscores growing regulatory acceptance of altcoin-based investment products and may open the door for further innovations in crypto ETFs that extend beyond Bitcoin and Ethereum.
For Ripple, the ETF could enhance XRP’s visibility and adoption in traditional financial markets, providing an additional bridge between crypto networks and institutional investors. As the first regulated, fully-backed XRP ETF in the U.S., Canary Funds’ product has the potential to redefine how altcoins are perceived in mainstream finance.
Looking Ahead
While the ETF is poised to launch imminently, industry observers caution that final confirmation depends on Nasdaq certification and any last-minute regulatory adjustments. Historically, similar filings have translated into next-day launches, but market participants remain watchful for official announcements.
If successful, Canary’s XRP Trust could signal the start of a new era in U.S. crypto investment—one in which altcoins with defined use cases, such as Ripple’s XRP, gain a legitimate foothold alongside Bitcoin and Ethereum in institutional portfolios. Analysts and investors alike will be closely monitoring Thursday’s developments, which may have far-reaching implications for liquidity, price discovery, and the evolution of the crypto ETF landscape in America.
In summary, Canary Funds’ XRP ETF represents a potentially transformative development: a regulated, fully-backed, spot-based vehicle for XRP, ready to bring broader investor access, improve liquidity, and mark a key step forward for the institutional adoption of digital assets beyond the Bitcoin-Ethereum duopoly.
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