The launch of the first US spot XRP ETF is inching closer, with Canary Funds’ registration seemingly poised for approval. If successful, this marks a significant milestone in the digital asset industry and could redefine institutional access to XRP. 📈
Canary Funds submitted their Form 8-A filing on Tuesday, signaling completion of the necessary regulatory procedures and paving the way for listing on Nasdaq. Bloomberg ETF analyst Eric Balchunas predicts the SEC approval and subsequent activation will occur within a day or two, potentially leading to trading on Thursday if all goes smoothly.
The launch would be a landmark moment for XRP, offering US investors direct exposure to the cryptocurrency through a Securities Act-compliant product. This structure eliminates reliance on futures or blended-asset strategies, allowing for a clearer and more transparent investment experience.
Analysts predict this will usher in a new era of ETF growth in the U.S., expanding beyond Bitcoin and Ethereum’s dominance. 🌎 Institutional investors who prefer regulated investment vehicles, particularly those wanting to avoid direct crypto exposure due to custody or compliance concerns, could be attracted by this product.
The success of the ETF launch could also boost liquidity and price discovery for XRP, as required assets are backed directly through a regulated trust.
However, not all is smooth sailing: Canary Funds’ offering differs sharply from the recently launched REX-Osprey XRPR ETF, which offers only partial XRP exposure. Because of this structure, it faces higher tracking variance, less efficient tax treatment and limited appeal among institutional investors.
By contrast, Canary’s 100% XRP-backed fund promises a cleaner and more transparent investment experience for those seeking pure exposure.
What’s next? The market will be closely watching Nasdaq’s final certification – the last hurdle before trading begins. It’s expected that confirmation of this milestone could trigger increased trading activity, potentially impacting the price of XRP in the process.