Canary Funds XRP ETF Set for Launch This Thursday After Final Filing

TLDR

• Canary Funds XRP ETF directly hold XRP tokens, unlike other ETFs.
• The ETF will begin trading on Nasdaq under ticker symbol “XRPC.”
• $5 billion in inflows forecasted in the first month of trading.
• Other firms, like Bitwise, are also preparing spot XRP ETFs for launch.

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Canary Funds is set to launch its first-ever pure-play spot XRP ETF this Thursday, following the completion of its final filing with the U.S. Securities and Exchange Commission (SEC). This marks a significant milestone in the cryptocurrency market, as the ETF will be the first to directly hold XRP tokens, a departure from other investment products that offer indirect exposure. The launch is pending Nasdaq approval and could bring substantial institutional interest to the XRP market.

Final Filing Clears Path for ETF Launch

Canary Funds has completed the final step for the introduction of its spot XRP ETF, having filed the last required documentation with the SEC. This filing is expected to become effective on Wednesday at 5:30 PM ET, pending Nasdaq’s certification. The ETF is scheduled to begin trading the following morning under the ticker symbol “XRPC.” Nasdaq has already approved the listing, and all regulatory steps have been cleared, paving the way for the launch.

The ETF will offer a direct exposure to XRP, unlike other funds that rely on offshore holdings. This makes it a “pure-play” spot ETF, the first of its kind for XRP in the United States. Canary’s filing was made under the Securities Act of 1933, allowing the trust to directly hold XRP tokens instead of using other financial instruments. This contrasts with the REX Osprey XRP ETF, which holds a partial amount of XRP and uses other assets for exposure.

Impact of the ETF Launch on XRP Market

The approval and subsequent launch of the ETF are expected to draw considerable attention to XRP, especially from institutional investors. According to Steven McClurg, CEO of Canary Capital, the firm anticipates significant inflows into the fund, with a forecast of $5 billion in the first month. If this target is met, the ETF could rank among the top 20 ETFs ever launched, potentially entering the top 10 if the momentum continues.

With the ETF’s direct exposure to XRP, it could lead to increased demand for the token. Institutional investors may view this as an easier and more secure way to gain exposure to the cryptocurrency market, particularly for those who have hesitated due to the complexities of direct cryptocurrency holdings. This development is part of a broader trend in the market, where cryptocurrency-related products are gaining more acceptance from traditional financial institutions.

Ripple’s Growing Presence in the Crypto Market

The launch of Canary’s XRP ETF also comes at a time when optimism surrounding Ripple’s XRP token is rising. Technical analysts have noted the formation of a “cup and handle” pattern in XRP’s price chart, which could signal a price rally in the near future. Some have projected that XRP might reach $5 by the end of this year, driven by the ETF launch and other positive market developments.

At the same time, some veteran traders are advising caution, suggesting that investors should remain patient during the current market consolidation. While the broader cryptocurrency market is showing signs of recovery, the uncertainty of government decisions in the U.S. has also played a role in market fluctuations. However, with the potential resolution of the U.S. government shutdown, market sentiment could shift positively in the coming weeks.

Growing Competition in the Spot XRP ETF Market

Canary Funds is not the only entity vying for a spot in the XRP ETF market. Other firms, such as Bitwise, Franklin Templeton, and 21Shares, have also filed for similar products. These filings were amended recently to remove any delaying clauses, which may speed up the approval process for additional spot XRP ETFs. The success of Canary’s ETF could signal the beginning of a new era for cryptocurrency-related investment products in the U.S.

Bitwise, in particular, is expected to follow closely with its own version of a spot XRP ETF. However, its approval will depend on SEC clearance, which may be delayed if the government shutdown continues. As more spot XRP ETFs enter the market, competition is likely to intensify, but it will also bring more options for investors looking to gain exposure to the token.

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