XRP News: First U.S. Spot XRP ETF Could Go Live on Thursday as Canary Funds Nears Final Approval

The First U.S. Spot XRP ETF Could Go Live on Thursday, marking a major development for the digital asset industry as Canary Funds moves closer to launching the nation’s first pure spot XRP exchange-traded fund. The move could significantly reshape institutional access to XRP and broaden the crypto ETF landscape beyond Bitcoin and Ethereum.Canary Funds filed Form 8-A with the U.S. Securities and Exchange Commission (SEC) on Tuesday, signaling that the product has completed its registration requirements and is ready for listing. According to Bloomberg ETF analyst Eric Balchunas, the filing represents the final regulatory step before trading and typically precedes activation within 24 hours.The ETF will become effective once Nasdaq certifies the listing, a decision expected by 5:30 p.m. ET on Wednesday, putting the fund on track for a potential Thursday market debut.A New Milestone for XRP and U.S. Crypto ETFsIf approved, the launch would be the first pure spot XRP ETF available to U.S. investors, offering direct exposure to XRP under the Securities Act of 1933. This structure allows investors to hold an asset-backed product that tracks the market price of XRP without relying on futures or blended-asset strategies.The ETF’s debut comes nearly two years after the highly anticipated arrival of spot Bitcoin ETFs in January 2024 and follows the approval of spot Ether ETFs earlier this year. Crypto analysts believe this marks a new phase in the U.S. ETF market—one where alternative networks beyond the top two assets gain regulatory traction.Institutional Demand Could Drive Strong InflowsA successful launch could draw fresh inflows from registered investment advisers (RIAs) who have avoided direct crypto exposure due to custody, compliance, or risk constraints. A spot ETF structure gives advisers a regulated investment wrapper while avoiding the operational complexities of holding XRP on-chain.Market observers also expect the product to improve liquidity and price discovery, since ETF shares must be backed by actual spot XRP held in custody by a regulated trust.A Cleaner, Fully Backed Alternative to XRPR ETFCanary’s offering contrasts sharply with the recently launched REX-Osprey XRPR ETF, which provides only partial XRP exposure under the Investment Company Act of 1940. XRPR holds a mixed basket of assets rather than maintaining full one-to-one XRP backing.Because of this structure, XRPR faces:Higher tracking varianceLess efficient tax treatmentLimited appeal among institutional allocatorsCanary’s ETF, by comparison, will be 100% XRP-backed, offering a cleaner and more transparent structure for investors seeking pure exposure.Market Reaction and Broader Crypto ImplicationsXRP traded near $2.48 in Asian markets early Wednesday, down roughly 5% amid a broader crypto pullback. Analysts expect that confirmation of Thursday’s launch could catalyze renewed trading activity.Beyond immediate price movements, the ETF’s approval could signal rising regulatory openness toward alternative crypto assets, with Solana ETF applications already under review. If successful, XRP’s debut could pave the way for more diversified blockchain-based investment products.Analysts Watching for ConfirmationBalchunas noted that previous filings—such as Canary’s recent HBAR ETF—went live the day after Form 8-A submission. While not guaranteed, the pattern strongly suggests that the First U.S. Spot XRP ETF Could Go Live on Thursday.Market participants are now watching for Nasdaq’s final certification, the last administrative hurdle before trading begins.