Canary Funds’ XRP Trust Nears U.S. Approval as First Spot XRP ETF

Canary Funds’ XRP Trust is on track to become the first pure spot XRP exchange-traded fund (ETF) in the United States, following the firm’s recent Form 8-A filing with the Securities and Exchange Commission (SEC). This filing signals that the product is ready for trading and represents the final procedural step before market activation. Bloomberg ETF analyst Eric Balchunas noted that once the Nasdaq certifies the listing — expected by 5:30 p.m. ET on Wednesday — the ETF will officially go live, paving the way for a Thursday market debut.

The approval of a spot XRP ETF would be a major milestone for Ripple and the broader crypto market, nearly two years after the launch of spot Bitcoin ETFs in January 2024. The new fund, issued under the Securities Act of 1933, allows investors direct exposure to XRP, unlike futures-based or hybrid ETFs. This could significantly expand XRP’s liquidity and attract institutional investors who previously avoided direct crypto holdings. Bitwise CEO Hunter Horsley described such an XRP ETF as a “huge, huge product” for the market.

Canary’s ETF is fully backed one-to-one with spot XRP, held in custody by a regulated trust. This structure contrasts with REX-Osprey’s $XRPR ETF, which offers only partial exposure through a mixed-asset model under the Investment Company Act of 1940, resulting in higher tracking costs and less favorable tax treatment. Analysts at CoinDesk suggest Canary’s launch could improve XRP price discovery and serve as a key test for institutional demand beyond Bitcoin and Ether.

As XRP trades around $2.48 amid broader market volatility, the anticipated ETF approval could mark the start of a new era in crypto investing — one where regulated altcoin ETFs gain traction alongside Bitcoin and Ethereum.