Canary Funds has made a significant update to its XRP spot Exchange Traded Fund (ETF) application submitted to the US Securities and Exchange Commission (SEC). Crypto journalist Eleanor Terrett reported on the development, highlighting a crucial change in the filing.
Key Application Update
The company has removed the "delaying amendment" clause from its application. This alteration means the registration can now take effect automatically. By eliminating this clause, Canary Funds removes the SEC's direct control over the timing of the ETF's approval, allowing it to become active automatically after a specified period.
Potential Launch Date and Contingencies
According to Terrett, this strategic move sets the stage for Canary's XRP spot ETF to potentially launch on November 13. However, this projected launch date is contingent upon Nasdaq approving the 8-A filing, which is a necessary step for listing securities on the exchange.
Government Reopening Impact
The ongoing government reopening could also influence the timeline for the XRP spot ETF's launch. If the filing process is completed without the SEC requesting additional comments, the launch date might be moved forward. Conversely, any delays in reviews due to the reopening could potentially postpone the ETF's activation.
SEC Chairman's Stance on Automatic Mechanisms
In a related development, SEC Chairman Paul S. Atkins has previously expressed support for mechanisms that allow for automatic entry into the market. While he did not comment directly on XRP ETFs, Atkins voiced his approval for companies utilizing the standard 20-day legal waiting period to go public, a process that mirrors the automatic activation mechanism now employed by Canary Funds.
Atkins further noted that this same legal framework was instrumental in the recent launches of SOL, HBAR, and LTC ETFs by firms like Bitwise and Canary Funds. He characterized this process as a "positive example of how capital markets work."