Canary Capital is positioning itself at the forefront of the evolving cryptocurrency investment landscape, aiming to launch the first U.S.-based spot XRP exchange-traded fund (ETF) as early as November 13. The firm has taken a decisive procedural step by removing the “delaying amendment” from its S-1 registration with the U.S. Securities and Exchange Commission (SEC). This move, while technical in nature, could pave the way for an automatic approval process, potentially allowing the ETF to become effective within 20 days—assuming no further regulatory objections arise.
This development marks a major milestone not just for Canary Capital but for the broader XRP ETF market. While various leveraged XRP ETFs have already been introduced and are seeing notable investor interest, a spot ETF would represent a significant leap forward in regulated crypto investment products. Spot ETFs differ from leveraged or futures-based products by directly holding the underlying asset—in this case, Ripple’s XRP token—offering investors more transparent and direct exposure.
The potential November 13 launch hinges on two critical factors: the internal review process at the SEC and Nasdaq’s approval of Canary’s Form 8-A, which is necessary for listing the ETF on the exchange. Although the removal of the delaying amendment indicates a confident step forward, any unforeseen feedback from the SEC could still shift the timeline. That said, the reopening of the U.S. government and recent SEC behavior suggest a more favorable regulatory environment for such filings.
SEC Commissioner Paul S. Atkins recently voiced increasing support for issuers utilizing the “auto-effective” route, which relies on a statutory 20-day waiting period under Section 8(a) of the Securities Act of 1933. This legal framework has already enabled the successful launch of ETFs tied to other altcoins like Solana (SOL), Litecoin (LTC), and Hedera (HBAR), despite bureaucratic slowdowns. Although Atkins stopped short of commenting specifically on the XRP ETF, his remarks imply a regulatory willingness to accommodate well-prepared filings.
Investor appetite for XRP-related products already appears robust. Several leveraged ETFs linked to XRP are actively trading, including offerings from Teucrium, Volatility Shares, Rex-Osprey, and ProShares. Notably, the Rex-Osprey XRP ETF, which debuted in September, has amassed over $114.6 million in assets under management. Meanwhile, Teucrium’s leveraged XRP ETF, launched in April, has grown even more rapidly, surpassing $384.4 million in net assets.
These strong inflows suggest that market participants are not just experimenting with XRP exposure—they’re embracing it. The success of these products sets a promising precedent for the launch of a spot XRP ETF, which could attract an even broader investor base due to its more straightforward, non-leveraged structure.
Moreover, Canary Capital is not alone in this pursuit. Several heavyweight asset managers—including Grayscale, Bitwise, CoinShares, WisdomTree, ProShares, Tuttle Capital, and 21Shares—have also filed or are developing applications for XRP or other crypto-focused ETFs. Yet if Canary’s timing holds, it may capture the first-mover advantage in the U.S. spot XRP ETF space.
Industry analysts are cautiously optimistic. Bloomberg ETF analyst James Seyffart noted that the recent revisions in Canary’s filings likely reflect constructive feedback from the SEC. Calling the move a “good sign,” Seyffart emphasized that while the change was expected, it adds confidence that the regulatory process is moving in the right direction.
The broader implications of a successful launch are significant. A spot XRP ETF would not only signal growing institutional acceptance of Ripple’s token but could also serve as a catalyst for similar approvals for other altcoins. Given XRP’s history of regulatory scrutiny, especially its long-standing legal battle with the SEC over whether it should be classified as a security, the approval of a spot XRP ETF could be a landmark moment in the crypto regulatory landscape.
Furthermore, the introduction of a spot XRP ETF may bring increased price stability and liquidity to XRP trading markets. ETFs typically attract institutional investors, whose long-term strategies often contribute to reduced market volatility. Additionally, such a product could open the door for more retirement accounts, mutual funds, and financial advisors to consider XRP exposure within client portfolios—something previously hindered by the lack of compliant investment vehicles.
It’s also worth noting that the listing of a spot XRP ETF could improve transparency and investor protection. ETFs are subject to stringent reporting requirements, periodic audits, and regulatory oversight, all of which contribute to a more secure and trustworthy investment environment. This could help mitigate some of the skepticism still lingering around digital assets.
For retail investors, the availability of a spot ETF offers a more accessible and regulated entry point into XRP, without the need for managing private keys, wallets, or dealing with unregulated crypto exchanges. This user-friendly format may further fuel adoption among traditional investors who have so far remained on the sidelines.
Looking ahead, if the SEC continues its trend of approving altcoin ETFs under the auto-effective framework, we could see a wave of new spot crypto ETFs entering the market. Such a shift would not only diversify the types of digital assets available to investors but also deepen the integration of cryptocurrency into mainstream financial systems.
In summary, Canary Capital’s strategic maneuver signals a pivotal moment for XRP and the broader crypto ETF ecosystem. If approved, the firm’s spot XRP ETF would mark a critical step in legitimizing Ripple’s token within regulated investment channels, potentially influencing both market dynamics and future regulatory decisions across the digital asset space.