Potential Launch of First U.S. Spot XRP ETF This Thursday

Canary Funds' XRP Trust Nears Launch

Canary Funds' XRP Trust is on the verge of becoming the first spot XRP exchange-traded fund (ETF) in the United States. Following the submission of Form 8-A to the Securities and Exchange Commission on Tuesday, the ETF is positioned for trading. Bloomberg ETF analyst Eric Balchunas indicates that this filing marks the final procedural step toward activation.

Regulatory Milestones

Anticipation is building as the Nasdaq is expected to certify the listing by 5:30 p.m. ET on Wednesday. If successful, the ETF will commence trading on Thursday, offering direct exposure to XRP under the Securities Act of 1933. This approval would represent a significant milestone for Ripple's ecosystem and the broader crypto market, nearly two years after spot Bitcoin ETFs debuted in January 2024.

Market Implications

The launch could broaden XRP's liquidity and attract inflows from investment advisers previously hesitant to engage with direct crypto exposure. Unlike REX-Osprey's $XRPR ETF, which offers partial XRP exposure through a mixed-asset structure, Canary's ETF provides full, one-to-one spot XRP backing in a regulated trust.

CoinDesk analysis suggests this debut could enhance price discovery and test the potential for institutional capital to move into altcoin-based products beyond Bitcoin and Ethereum. As of Wednesday morning in Asia, XRP traded near $2.48, down 5% amid a broader market decline.

Looking Ahead

With spot Ether ETFs already operational and Solana applications pending, the approval of the XRP ETF could mark a new phase of asset diversification in the U.S. crypto ETF landscape, extending beyond the prominent Bitcoin and Ethereum networks.