The U.S. crypto investment landscape is about to take a significant step forward with the expected launch of Canary Funds’ XRP Trust, the first pure spot XRP exchange-traded fund (ETF) in the country. The listing, pending Nasdaq certification, could go live Thursday, marking a defining moment for Ripple’s XRP ecosystem and the broader altcoin market.
According to Bloomberg ETF analyst Eric Balchunas, Canary’s Form 8-A filing with the U.S. Securities and Exchange Commission (SEC) signals the fund’s readiness to begin trading. Once certified by Nasdaq — anticipated by 5:30 p.m. ET Wednesday — the product will become effective under the Securities Act of 1933, giving investors direct XRP exposure rather than through futures or hybrid assets.
Why the XRP ETF Matters
A successful launch could dramatically expand XRP’s liquidity base and attract inflows from registered investment advisers who had previously avoided direct crypto exposure. The event would also be a big step forward for regulators and institutions. It would happen almost two years after the first Bitcoin ETFs were issued in 2024.
Unlike other crypto ETFs that offered indirect exposure, Canary’s XRP Trust holds 100% spot-backed XRP in custody with a controlled trust. This structure is meant to make things more clear and safe.
What Makes It Different from REX-Osprey's Product
REX-Osprey’s $XRPR ETF was the first to market, but it is regulated by the Investment Company Act of 1940 and only has a small amount of XRP exposure. That design means more money spent on tracking and worse tax handling. Canary’s pure-play ETF, built on the 1933 Act, is seen as a cleaner, more efficient structure for investors seeking direct access to XRP.
Analysts Expect Strong Institutional Demand
Analysts at CoinDesk suggest that Canary’s debut could improve price discovery and test whether institutional capital is ready to flow into altcoin-based ETFs beyond Bitcoin and Ethereum.
XRP traded near $2.48 in Asian morning hours on Wednesday, down 5% in 24 hours amid broader market weakness, but enthusiasm for the ETF remains strong.
Canary Capital CEO Steven McClurg said earlier that the ETF could attract up to $5 billion in inflows during its first month — potentially outperforming Solana’s ETF launch and rivaling early Bitcoin ETF success.
Sentiment, Not Consensus, Drives ETF Success
Bitwise CIO Matt Hougan believes the upcoming XRP ETF could be one of the most successful crypto products of 2025. While analysts debate whether XRP can surpass Solana’s early performance, Hougan notes that investor conviction, not broad consensus, determines ETF inflows.
He explained that XRP’s long-standing community — active through years of regulatory uncertainty — provides the enthusiastic investor base that typically powers strong ETF demand.
“ETF inflows depend on the strength of those who want to own the asset, not those who oppose it,” Hougan said.
This dedicated following, he added, makes XRP one of the few crypto assets capable of sustaining long-term institutional interest.
Beyond Bitcoin and Ethereum: Expanding the ETF Landscape
Spot Ether ETFs are now live, and Solana ETF applications are still being processed. The approval of XRP marks the start of a new phase of asset diversification in the U.S. crypto ETF environment.
As long as it works, it would show that controlled markets are ready to accept payment-focused and settlement-driven networks, making them more common than just Bitcoin and Ethereum.
Conclusion
Canary Funds’ XRP ETF will become the first pure spot XRP ETF in U.S. history on Thursday if Nasdaq approves the launch as planned. Its success could change how institutional investors handle altcoins, proving that XRP is a link between standard banks and next-generation blockchain networks.