Canary Funds has taken a key step toward launching the first U.S. spot XRP exchange-traded fund (ETF). The asset manager filed an updated registration (S-1) with the U.S. Securities and Exchange Commission (SEC), removing a “delaying amendment”, a clause that gives the SEC control over when a filing becomes effective.
By removing that clause, Canary is using Section 8(a) of the Securities Act, which allows a registration to automatically take effect after 20 days unless the SEC intervenes. This timeline sets November 13 as the potential launch date for the Canary XRP ETF, pending Nasdaq’s approval of its Form 8-A filing that enables share trading.
Journalist Eleanor Terrett noted that SEC Chair Paul Atkins has supported companies taking advantage of the automatic activation mechanism during the ongoing government shutdown. Canary and Bitwise both used the same approach to bring Solana (SOL), Litecoin (LTC), and Hedera (HBAR) ETFs to market earlier this week.
How the ETF is structured and managed
According to the ETF’s prospectus, the Canary XRP ETF is structured as a grantor trust that will hold actual XRP tokens. It aims to track the token’s market value, minus operational costs and liabilities.
The fund’s net asset value (NAV) will be calculated using the CoinDesk XRP CCIX New York Rate, a 60-minute time-weighted average of XRP prices across major exchanges.
The Canary Capital Group LLC serves as the sponsor, while CSC Delaware Trust Company acts as trustee. U.S. Bank is both the cash custodian and administrator, and Gemini Trust Company and BitGo Trust Company are named as digital asset custodians, responsible for securely holding the XRP.
The Canary Capital Group LLC serves as sponsor, with CSC Delaware Trust Company as trustee. U.S. Bank acts as the cash custodian and administrator, while Gemini Trust Company and BitGo Trust Company will securely hold the XRP.
Shares will be issued and redeemed in blocks of 10,000 units, known as “Baskets,” by authorized financial institutions delivering either cash or XRP. Once trading begins, the ETF is expected to list on Nasdaq under the ticker “XRPC.”
Importantly, the trust is not registered under the Investment Company Act of 1940 and is not subject to Commodity Futures Trading Commission (CFTC) oversight, meaning investors won’t receive the same protections as mutual fund or futures investors.
Early launch window
The November 13 date marks the earliest possible launch, but the SEC can still delay or halt the process. Canary Capital Group, Inc., an affiliate of the sponsor, will act as the seed investor, purchasing 10,000 shares at $25 each to provide the initial XRP backing for the trust.
While a launch isn’t guaranteed, the filing shows how issuers are still exploring the limited regulatory routes available for digital asset ETFs as broader market uncertainty continues.
Wider XRP ETF race
The newly-launched XRPR, issued by REX Shares in partnership with Osprey Funds, began trading on September 18, 2025, making it the first U.S. ETF offering spot exposure to XRP. Launched alongside a Dogecoin fund, the two products together saw about $55 million in first-day trading, with XRPR alone accounting for $37.7 million.
Unlike the pending Canary ETF, XRPR is structured under the Investment Company Act of 1940, which makes it a hybrid fund instead of a pure spot ETF. It holds a mix of XRP tokens, cash, and short-term assets, giving investors only indirect exposure to XRP’s price.
Several major firms, including Grayscale, 21Shares, Bitwise, Canary Capital, CoinShares, and WisdomTree, still have their XRP ETF applications under review.
So far, the SEC hasn’t approved any pure spot XRP ETF this month and continues to extend deadlines or request additional information before making a final decision.
Also Read: XRP, SOL, LTC Spot ETF Approvals In Two Weeks: Expert
