Canary Funds Readies First US Spot XRP ETF for November 13

Canary Funds is set to make waves in the financial market with its plans to introduce what may very well be the first spot XRP ETF in the United States. The targeted launch date is November 13, contingent on the approval from Nasdaq, following a strategic adjustment to its legal processes that minimizes the SEC's influence over the timing.

This shift stems from an amendment in Canary's revised S-1 registration statement. As reported by Crypto In America host Eleanor Terrett, the firm has eliminated the 'delaying amendment' which previously hindered the registration from automatically taking effect, thus granting the SEC authority over its timing. By removing this amendment, the registration can automatically become effective after the 20-day statutory waiting period, provided that the SEC does not intervene.

According to Terrett, this development solidifies a timeline for Canary’s ETF launch: "This sets Canary’s XRP ETF up for a launch date of November 13, assuming the Nasdaq greenlights the 8-A filing." This Form 8-A is essential for the product to officially list on Nasdaq and commence trading. Thus, the approval from the exchange stands as the final operational hurdle. Should Nasdaq grant the green light and the SEC refrain from obstructing the process, trading can commence.

This strategy is not merely theoretical; it mirrors the legal framework that facilitated the recent launch of spot crypto ETFs associated with Solana (SOL), Hedera (HBAR), and Litecoin (LTC) just days ago, despite the ongoing U.S. government shutdown. Terrett highlights that both Bitwise and Canary adeptly utilized the 20-day waiting window "to go public during the shutdown," effectively taking advantage of a period when standard review processes are limited.

Despite this promising outlook, uncertainties linger. Terrett warns that the reopening of the government could potentially alter the timeline, either accelerating it if the filing is complete and the SEC is satisfied, or delaying it if the agency decides to propose further comments. Essentially, the November 13 launch date remains fluid, subject to how swiftly the SEC resumes its operations and whether it opts to request modifications.

Furthermore, there are indicators emerging from the SEC's upper echelons. While not directly addressing crypto ETFs, SEC Chair Paul Atkins expressed his satisfaction with companies like MapLight utilizing the 20-day statutory waiting period to initiate public offerings during the shutdown, commending the same legal route that Canary is currently pursuing for XRP. Terrett interprets this as a significant acknowledgment from the agency of the validity of utilizing the statutory clock for effectiveness instead of relying on negotiated timings.

However, it’s essential to recognize that XRP is not Solana. Bloomberg’s senior ETF analyst Eric Balchunas pointed out that "XRP docs didn’t have the same comments back-and-forth with the SEC that Solana had," noting that this disparity was a factor in why issuers felt prepared. He remarked, "But hey, worth a try I guess."

This distinction is crucial: Solana's ETF filings experienced a series of constructive interactions with SEC personnel prior to the government shutdown, which instilled confidence in issuers. In contrast, Canary is navigating the process with a less visible degree of negotiation for XRP.

This situation creates a binary outcome. If Nasdaq approves the 8-A filing and the SEC allows the auto-effective clock to run its course without imposing additional comments, the XRP fund could officially begin trading on November 13, potentially marking the advent of the first U.S. spot ETF. Conversely, if the SEC intervenes by introducing further comments on the S-1 or exerting pressure on the listing, it would signal a clear boundary: the Commission's willingness to permit auto-effectiveness for select cases.

As the anticipated launch date approaches, all eyes will be on the SEC and Nasdaq's actions. The potential for a groundbreaking first U.S. spot XRP ETF is exciting, yet the path forward remains uncertain. Stakeholders and market participants alike will be keenly observing how these developments unfold in the coming weeks.