Canary Funds Removes SEC Delay Clause, Paving Way for Spot XRP ETF by November 13

Canary Funds’ updated S-1 removes the delaying clause, allowing its spot XRP ETF to auto-activate.

Nasdaq’s approval of the 8-A filing could clear the way for a November 13 XRP ETF launch.

Over 20 XRP ETF applications await SEC review as investor demand for XRP products surges.

Canary Funds is moving forward with plans to launch a spot XRP exchange-traded fund after filing an updated S-1 registration with the SEC. The new submission removes the delaying amendment, enabling the ETF to automatically go effective under the 20-day rule if Nasdaq grants approval of the related 8-A filing.

Canary Funds Nears Potential Launch of Spot XRP ETF

Canary Funds’ updated filing limits the SEC’s control over the timing of approval, creating a possible automatic effectiveness window. If the SEC raises no objections, the ETF could go live by November 13. Nasdaq’s review of the 8-A filing remains a key factor in the launch timeline.

Market expert Eleanor Terret noted that the launch schedule could depend on the U.S. government’s reopening and the SEC’s review speed. SEC Commissioner Paul S. Atkins recently expressed support for firms using the auto-effective route during the shutdown, calling it an important step to maintain progress for financial products.

Bloomberg’s senior ETF strategist Eric Balchunas said the XRP filing involved less interaction with the SEC than Canary’s Solana ETF. He described the company’s approach as “worth a try,” pointing out that previous filings under the same framework had moved more efficiently through the approval process.

Rising Interest in XRP-Based Investment Products

Investor interest in XRP-linked funds continues to grow. The Rex-Osprey XRP ETF, launched six weeks ago under a ’40 Act structure, has already surpassed $100 million in assets. Operating as an investment company rather than a commodity trust, the fund reflects strong demand for regulated XRP exposure.

Bitwise Chief Investment Officer Matt Hougan said an XRP ETF could attract more than $1 billion in inflows within its first few months. He stated that XRP’s investor community remains highly active and could support strong early trading activity once the ETF begins trading.

The SEC is currently reviewing around 20 XRP ETF applications, slightly behind Bitcoin and Solana with 23 each, and Ethereum with 16. Canary Funds, which recently launched Solana and HBAR ETFs under the same auto-effective structure, is now applying this model to its XRP product, positioning it for a potential November debut.

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