Canary Funds’ XRP Trust could become the first pure spot an exchange-traded fund (ETF) will be listed in the United States, following the company’s filing of Form 8-A with the Securities and Exchange Commission on Tuesday.
According to Bloomberg ETF analyst Eric Balchunas, this filing signals that the fund is ready for trading and represents the final procedural step before activation. A successful ETF launch could expand XRP’s liquidity base and potentially trigger inflows from registered investment advisors who previously avoided direct crypto exposure.
Once Nasdaq certifies the listing – expected Wednesday at 5:30 p.m. ET – the ETF will go into effect, clearing the final regulatory hurdle for a market opening on Thursday. The product will fall under the Securities Act of 1933, allowing direct exposure to XRP rather than futures or hybrid structures.
The approval would mark a significant milestone for Ripple’s ecosystem and the broader crypto market, arriving nearly two years after the launch of spot bitcoin ETFs in January 2024.
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Canary’s ETF provides full, individual spot XRP backing held by a regulated trust, unlike REX-Osprey’s recently launched $XRPR ETF, which operates under the Investment Company Act of 1940 and only offers partial exposure to XRP through a mixed asset structure.
Partial exposure results in higher monitoring costs and less favorable tax treatment.
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CoinDesk’s analysis suggests that Canary’s debut could facilitate cleaner price discovery and serve as a test of whether institutional capital will shift to altcoin-based products beyond Bitcoin and Ether.
XRP traded near $2.48 on Wednesday morning in Asia, down 5% in 24 hours alongside a broader market decline.
With spot ether ETFs now active and solana applications still pending, approval of XRP could cement a new phase of asset diversification in the US crypto ETF landscape – one that extends beyond the two big networks – Bitcoin and Ethereum – into networks with defined payment and settlement use cases.
