The crypto market saw intense volatility this week as XPL collapsed 90% amid stalled development concerns, while XRP moved closer than ever to securing the first U.S. pure spot XRP exchange-traded fund (ETF) — a milestone that could reshape crypto investment beyond Bitcoin and Ethereum.
At the center of the development is Canary Funds’ XRP Trust, which is positioned to become the first 100% spot-backed XRP ETF to list on a U.S. exchange. The fund filed Form 8-A with the U.S. Securities and Exchange Commission on Tuesday, signaling that the product is fully prepared for exchange trading pending final procedural approval.
Bloomberg ETF analyst Eric Balchunas noted that the Form 8-A submission represents the last significant step before activation. “A successful ETF launch could expand XRP’s liquidity base and potentially trigger inflows from registered investment advisers who have avoided direct crypto exposure beyond bitcoin,” Balchunas said.
Nasdaq Certification Expected Within Hours
Once Nasdaq certifies the listing, expected by 5:30 p.m. ET on Wednesday, the ETF will become effective and eligible for a Thursday market open. The product will list under the Securities Act of 1933, enabling direct exposure to XRP, unlike futures-based or blended ETF structures.
If approved, the launch will represent a historic moment for Ripple’s ecosystem and the wider crypto market — arriving nearly two years after spot bitcoin ETFs began trading in January 2024 and months after spot ether ETFs gained approval.
Balchunas added context in a social post:
“Canary filed 8A for XRP ETF last night, which points to launch tomorrow or Thursday (today is holiday). Thursday was the day we thought they’d be on track for but when they did the 8A for HBAR they launched the next day. Not done deal but all boxes being checked.”
A Pure Spot XRP Product — Unlike XRPR’s Partial Exposure
Earlier this month, REX Shares launched the XRPR ETF, which offers partial spot XRP exposure under the Investment Company Act of 1940. However, XRPR uses a mixed-asset structure, reducing its purity as an XRP investment vehicle.
Canary’s ETF differs significantly:
- 100% spot XRP backing
- Assets held in custody by a regulated trust
- More efficient tax treatment
- Cleaner tracking and price discovery
Market analyst Eleanor Terrett highlighted the contrast:
“@REXShares $XRPR ETF came first under the Investment Company (‘40) Act with partial spot $XRP exposure and less efficient tax treatment. But @CanaryFunds is set to launch the first pure-play 33 Act $XRP ETF with 100% XRP, nothing else.”
Institutional Capital Test Case
CoinDesk analysts say Canary’s upcoming ETF may act as a critical test of institutional demand for altcoin-based financial products. With Bitcoin and Ethereum already securing spot ETF approvals, and Solana applications pending, an XRP approval could mark a new expansion phase for the U.S. digital-asset ETF market.
The approval could also help stabilize long-term price discovery for XRP, creating regulated access for investment advisers, family offices, and institutions that are restricted from direct token exposure.
Market Reaction
Despite the positive developments, XRP traded lower in Asian hours Wednesday, falling 5% to around $2.48 during a broader market pullback. Meanwhile, XPL collapsed 90% as developers confirmed delays in protocol updates, prompting panic selling among holders.
A New Phase of U.S. Crypto Diversification
If the listing goes live as expected, the XRP ETF would become the first major U.S. altcoin ETF outside Bitcoin and Ethereum to offer full, direct spot exposure. With defined utility in payments and settlement, XRP’s ETF debut could accelerate diversification in the regulated U.S. crypto market.
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