A U.S.-based asset management firm, Canary Capital, is making significant strides in the crypto space with substantial updates to its spot ETF proposal for XRP, targeting a launch date of November 13. This forward movement is attributed to the removal of a deferment amendment, which allows the registration to become effective automatically.
Approval Process Acceleration
The momentum gained from Canary Capital's recent introduction of Solana and HBAR ETFs has paved the way for a similar strategy with XRP. By amending its S-1 filing, the company is aiming for a smoother approval process. Eric Balchunas, a Bloomberg ETF strategist, noted that XRP's application experienced notably less interaction with the SEC compared to Solana's ETF, describing it as a "bold move worth considering."
Eleanor Terret from CNBC highlighted the critical role of Nasdaq's approval of the 8-A filing for the ETF's launch. Should the SEC not raise any objections during the review period, the ETF could potentially go live even sooner than initially anticipated. There is a prevailing sentiment that SEC Chairman Paul S. Atkins supports the automatic activation method, particularly in light of potential government shutdowns.
Investor Expectations for XRP ETFs
The XRP ETF, initially launched by Rex-Osprey, demonstrated strong performance, rapidly surpassing the $100 million mark within its first six weeks. Matt Hougan, Bitwise's Chief Investment Officer, predicts that these XRP ETFs could quickly reach billion-dollar valuations. Hougan commented to DL News:
“Despite widespread doubts about XRP in the cryptocurrency sphere, it has a firmly dedicated investor community heavily inclined towards purchasing.”
Currently, approximately 20 separate XRP ETF applications are awaiting SEC approval, in addition to 23 applications for Bitcoin and Solana ETFs, and 16 for Ethereum. Experts suggest that an accelerated approval timeline could potentially drive XRP's price towards the $10 threshold.
Key Developments
- •Canary Capital's spot XRP ETF is projected for a November 13 launch.
- •Efforts are being made to utilize automatic registration processes to mitigate potential regulatory delays caused by government shutdowns.
- •Building on the success of earlier launches, Canary Capital expresses optimism regarding the XRP ETF's performance in its initial months.
As anticipation mounts, the cryptocurrency community and investors are closely observing these developments, which could inject significant activity and interest into the digital currency markets. The upcoming weeks are poised to reveal pivotal moments for XRP ETFs and the broader crypto investment landscape.