Canary Funds has taken a significant step toward launching the first U.S. spot XRP exchange-traded fund (ETF). The asset manager has filed an updated registration (S-1) with the U.S. Securities and Exchange Commission (SEC), notably removing a "delaying amendment." This clause previously granted the SEC control over the effective date of the filing.
By eliminating this amendment, Canary is leveraging Section 8(a) of the Securities Act. This provision allows a registration statement to become effective automatically after 20 days, unless the SEC intervenes. This regulatory pathway sets November 13 as the potential launch date for the Canary XRP ETF, contingent upon Nasdaq's approval of its Form 8-A filing, which is necessary for the shares to be traded.
Journalist Eleanor Terrett highlighted that SEC Chair Paul Atkins has expressed support for companies utilizing the automatic activation mechanism during the ongoing government shutdown. Both Canary and Bitwise have employed this same strategy to bring Solana (SOL), Litecoin (LTC), and Hedera (HBAR) ETFs to market recently.
ETF Structure and Management Details
The prospectus for the Canary XRP ETF outlines its structure as a grantor trust. This trust will hold actual XRP tokens with the objective of tracking the token's market value, after accounting for operational costs and liabilities.
The fund's net asset value (NAV) will be calculated using the CoinDesk XRP CCIX New York Rate. This rate is a 60-minute time-weighted average of XRP prices sourced from major exchanges.
Canary Capital Group LLC will serve as the sponsor, with CSC Delaware Trust Company acting as the trustee. U.S. Bank is designated as the cash custodian and administrator. Gemini Trust Company and BitGo Trust Company are named as the digital asset custodians, tasked with the secure safekeeping of the XRP holdings.
Shares of the ETF will be issued and redeemed in blocks of 10,000 units, referred to as "Baskets." These transactions will be conducted by authorized financial institutions, which can deliver either cash or XRP. Upon commencement of trading, the ETF is anticipated to be listed on Nasdaq under the ticker symbol "XRPC."
It is important to note that the trust is not registered under the Investment Company Act of 1940 and therefore is not subject to Commodity Futures Trading Commission (CFTC) oversight. This means investors will not receive the same level of protection afforded to those investing in mutual funds or futures.
Potential Early Launch Window
The November 13 date represents the earliest possible launch for the ETF. However, the SEC retains the authority to delay or halt the process. Canary Capital Group, Inc., an affiliate of the sponsor, will act as the seed investor. This entity will purchase 10,000 shares at $25 each, providing the initial XRP backing for the trust.
While a launch is not guaranteed, this filing demonstrates how issuers are actively exploring the limited regulatory avenues available for digital asset ETFs amidst ongoing market uncertainty.
The Broader XRP ETF Landscape
The XRPR ETF, issued by REX Shares in collaboration with Osprey Funds, began trading on September 18, 2025, marking it as the first U.S. ETF to offer spot exposure to XRP. Launched concurrently with a Dogecoin fund, these two products collectively saw approximately $55 million in trading volume on their debut day, with XRPR alone contributing $37.7 million.
In contrast to the pending Canary ETF, XRPR is structured under the Investment Company Act of 1940. This classification makes it a hybrid fund rather than a pure spot ETF. It holds a combination of XRP tokens, cash, and short-term assets, providing investors with indirect exposure to XRP's price movements.
Several prominent firms, including Grayscale, 21Shares, Bitwise, Canary Capital, CoinShares, and WisdomTree, still have their XRP ETF applications under review by the SEC.
To date, the SEC has not approved any pure spot XRP ETFs this month. The commission continues to extend deadlines or request additional information from applicants before reaching final decisions.
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