Is the XRP ETF launching today? The inside scoop on the crypto market’s biggest story
In a stunning move that is defying the broader crypto market’s sluggish performance, XRP is capturing the spotlight. The catalyst? A whirlwind of anticipation that the very first U.S. spot exchange-traded fund (ETF) for XRP could begin trading within hours, marking a monumental step for the fourth-largest cryptocurrency.
The frenzy ignited after Nasdaq officially certified the listing of the Canary XRP ETF (ticker: XRPC), a product from asset manager Canary Capital. In a formal notification to the Securities and Exchange Commission (SEC) early Thursday morning, Nasdaq confirmed it had approved the fund for listing, positioning it for a potential launch as soon as the market opens.
This development leverages a unique regulatory window created by the ongoing government shutdown. With the SEC operating with a skeleton crew, a specific procedural path has become the talk of Wall Street.
The Regulatory Loophole Fueling the Fire
So, how can a crypto ETF launch while the government is effectively closed? The answer lies in a key SEC guidance and a powerful form.
Prior to the shutdown, the SEC clarified procedures for firms looking to go public. A critical part of this allows an ETF to file its registration statement without a “delaying amendment.” Normally, this amendment gives the SEC a 20-day window to review and comment, preventing automatic effectiveness. By waiving this, and provided the ETF meets pre-approved listing standards, the path is cleared.
The final step is the filing of a Form 8-A. Canary Capital filed this form on Tuesday for XRPC. Nasdaq’s notification to the SEC on Thursday confirms they have received it, triggering what is known as “automatic effectiveness.” This procedural nuance is why the market is buzzing with the possibility of a launch imminently.
Bloomberg’s senior ETF analyst, Eric Balchunas, added fuel to the fire, confirming the development on social media platform X: “The official listing notice for XRPC has arrived from Nasdaq. Looks like tomorrow is on for the launch.”
Nate Geraci, President of the ETF consultancy The ETF Store, also noted the significance, pointing out that Canary had already launched the ETF’s website, signaling readiness. He stated, “Canary Capital will be first to market.”
A Landmark Achievement, But Not Without Caveats
If XRPC begins trading as expected, it will instantly become the sixth single-asset spot crypto ETF available in the United States, joining the ranks of established funds for Bitcoin (BTC), Ether (ETH), Solana (SOL), Litecoin (LTC), and Hedera (HBAR).
However, seasoned analysts are urging a dose of caution. They point out that Nasdaq’s letter is a procedural milestone, not an explicit final approval from the SEC. One commentator carefully noted, “The Nasdaq letter itself does not say the ETF is effective — it only says Nasdaq approved the listing and joined the registrant’s request for SEC effectiveness. This is a routine procedural letter, not confirmation that trading will start.”
This highlights the unprecedented and somewhat uncertain nature of a launch during a government shutdown.
A Crowded Field of Competitors
Canary Capital’s race to the finish line is happening amidst a crowded field of heavyweight contenders. Other major asset managers, including Bitwise, 21Shares, WisdomTree, ProShares, and Grayscale, have all filed for their own versions of a spot XRP ETF.
Notably, REX Shares already launched an XRP-related ETF in September, but it took a different legal structure. Registered under the Investment Company Act of 1940, that fund operates differently and holds a mix of XRP directly and shares of other XRP-related ETFs.
The success of Canary’s potential launch today could force the hand of these other firms and accelerate the entire approval process for a wave of new crypto ETFs, with Dogecoin (DOGE) ETFs believed to be the next in line. With several proposals, including one from Grayscale, having potential effective dates around November 23rd, the final quarter of 2024 is shaping up to be a historic period for crypto accessibility in mainstream finance.
Frequently Asked Questions (FAQ)
Q1: What is the Canary XRP ETF (XRPC)?
A1: The Canary XRP ETF (ticker: XRPC) is an exchange-traded fund designed to track the price of XRP. If launched, it would allow investors to gain exposure to XRP’s price movements through a traditional stock brokerage account without having to hold the cryptocurrency directly.
Q2: When will the XRP ETF start trading?
A2: As of the morning of Thursday, the ETF is positioned to launch as early as today, pending final automatic effectiveness from the SEC. The launch is expected to occur after the market opens, but it is contingent on the successful completion of the regulatory process during the government shutdown.
Q3: How can an ETF launch during a government shutdown?
A3: Due to pre-shutdown SEC guidance, ETFs can achieve “automatic effectiveness” by filing a Form 8-A without a “delaying amendment.” This bypasses the typical 20-day SEC review period, allowing the listing to proceed if the exchange (like Nasdaq) has approved it.
Q4: Is this the first XRP ETF ever?
A4: No. REX Shares launched an XRP-related ETF in September, but it has a different legal structure and investment strategy. The Canary XRP ETF (XRPC) would be the first to launch using this specific, more common ETF structure that directly tracks the spot price.
Q5: Who are the other companies trying to launch an XRP ETF?
A5: Major asset managers like Bitwise, 21Shares, WisdomTree, ProShares, and Grayscale have all filed for spot XRP ETFs, creating a highly competitive landscape.
Q6: What does this mean for the price of XRP?
A6: The anticipation of a U.S. spot ETF has already positively impacted XRP’s price, defying broader market weakness. Historically, the launch of a spot ETF provides a new, easy avenue for institutional and retail investment, which can be bullish for the underlying asset’s price, though nothing is guaranteed.