Washington, D.C. — Canary Funds has taken a significant step toward launching the first spot XRP exchange-traded fund in the U.S., filing an updated S-1 registration that paves the way for automatic approval by mid-November.
This move comes amid a U.S. government shutdown, creating a narrow window for streamlined regulatory processing. The filing targets a Nasdaq debut on November 13, 2025, pending final Form 8-A clearance.
In a fast-evolving crypto market, Canary Funds’ bid for an XRP spot ETF highlights growing institutional interest in Ripple‘s token following its legal victories.
Filing Update Removes Key Hurdles
Canary Funds submitted its revised S-1 to the Securities and Exchange Commission on October 28, 2025, eliminating a previously included delaying amendment. Under Section 8(a) of the 1933 Securities Act, this change allows the registration to become effective automatically after a 20-day review period—bypassing traditional SEC objections during the shutdown.
The strategy echoes recent successes with spot ETFs for Solana (SOL), Hedera (HBAR), and Litecoin (LTC), where Canary and Bitwise secured quick approvals. SEC Chair Paul Atkins has publicly supported these “auto-effective” processes as a more efficient path for issuers, reducing administrative bottlenecks.
Fox Business reporter Eleanor Terrett first detailed the filing’s implications in a post on X, noting the shutdown’s role in accelerating timelines.
Prospectus Details Trust Structure and Custodians
The accompanying prospectus outlines the ETF’s operational framework, positioning it as a straightforward investment vehicle tracking XRP’s spot price. Gemini Trust and BitGo will serve as custodians, ensuring secure handling of the underlying assets.
Investors would gain exposure without direct crypto ownership, similar to Bitcoin and Ethereum ETFs. The document emphasizes compliance with SEC standards, including risk disclosures tied to XRP’s volatility and Ripple’s ecosystem.
This structure addresses past regulatory concerns that delayed XRP products, especially after Ripple’s 2023 court win clarifying the token’s non-security status for secondary sales.
Projected Inflows Signal Market Momentum
Analysts project $5 billion to $8 billion in inflows for the XRP ETF by year-end, fueled by renewed optimism post-Ripple lawsuit resolution. That legal clarity has unlocked broader adoption, with institutions eyeing XRP for cross-border payments.
The filing’s timing aligns with a bullish crypto rally, where XRP has climbed 15% in the past week amid ETF speculation. For U.S., UK, and Indian investors, this could democratize access to a token long favored for its utility in remittances and DeFi.
As with SOL and HBAR launches, Canary’s approach minimizes disruption, potentially setting a template for future altcoin ETFs.
Broader Implications for Crypto Regulation
If approved, the XRP ETF could accelerate SEC nods for other digital assets, signaling a thaw in crypto oversight under Atkins’ leadership. With Nasdaq’s infrastructure ready, trading could begin almost immediately post-effectiveness.
Market watchers will monitor Form 8-A submission closely—any snag could push the debut to December. Yet this filing underscores a pivotal shift: from litigation to liquidity, positioning XRP as a cornerstone of mainstream finance.
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