Canary Capital XRP ETF Set to Launch This Week

Canary Capital took the crucial regulatory step this week that could bring its XRP-focused exchange-traded fund to market within days. The Nashville, Tennessee-based investment firm filed a Form 8-A with the U.S. Securities and Exchange Commission on Monday, meeting the regulatory requirement for companies registering securities. This filing positions the Canary XRP ETF for potential listing on the Nasdaq exchange, providing investors with direct exposure to the spot price of XRP, currently the fourth-largest digital asset by market capitalization.

Bloomberg Senior ETF Analyst Eric Balchunas highlighted the significance of the timing in a social media post, noting that “Canary filed 8A for XRP ETF last night, which points to launch tomorrow or Thursday (today is holiday).” While cautioning that it’s “not [a] done deal,” Balchunas observed that “all boxes [are] being checked,” suggesting the regulatory pathway appears clear for the fund’s imminent debut. This development comes as the SEC currently weighs more than 90 cryptocurrency-focused fund applications spanning single-asset tokens, combinations of digital assets, and various investment strategies.

The Canary XRP ETF would become the second fund providing U.S. investors with exposure to XRP, following the successful September debut of the Rex-Osprey XRP ETF (ticker: XRPR). That pioneering fund generated an impressive $38 million in inflows on its first trading day, significantly surpassing market expectations. The rapid accumulation continued, with XRPR now managing more than $138 million in assets, demonstrating substantial investor appetite for XRP exposure through regulated financial products.

Rex-Osprey’s approach to providing XRP exposure involves a subsidiary registered in the Cayman Islands that is wholly owned and controlled by the fund. This structure has proven effective in navigating regulatory requirements while delivering the underlying asset exposure investors seek. The success of this model has likely influenced Canary Capital’s approach as it prepares to enter the same market space, potentially creating competitive dynamics that could benefit investors through improved fund structures and lower fees.

The accelerating interest in XRP-focused ETFs reflects a broader trend of institutional and retail investors seeking exposure to cryptocurrency assets beyond the dominant Bitcoin and Ethereum markets. According to etf.com Senior Analyst Sumit Roy, the Canary product has significant potential to attract substantial inflows due to investors’ strong interest in XRP and other altcoin-focused ETFs. Roy pointed to the remarkable success of Bitwise’s Solana fund, which reached $500 million in assets under management within just two weeks of its recent launch.

“While Solana is arguably more popular than XRP, Bitwise’s Solana ETF managed to become a $500 million fund in two weeks, which suggests that there is demand for funds that provide exposure to crypto assets beyond Bitcoin and Ethereum,” Roy told Decrypt. He added that for the Canary XRP ETF, “over $100 million in inflows for the short-term wasn’t out of the question,” indicating strong confidence in the product’s market reception despite XRP’s recent price volatility.

The broader crypto ETF landscape continues to evolve rapidly, with Bitcoin and Ethereum ETFs that debuted last year now managing approximately $139 billion and nearly $21 billion in assets, respectively. These successful products, combined with a gradually friendlier U.S. regulatory environment, have strengthened demand for other crypto-focused funds. XRP’s current market position reflects this volatility, with the token recently trading at $2.40 per coin according to CoinGecko data, representing a 6% decline over 24 hours and sitting more than 30% below its July all-time high of $3.65.