Canary Funds has taken a significant step towards the approval of its XRP spot Exchange-Traded Fund (ETF) by filing an updated S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). This development suggests that the approval process could be expedited.
The company has removed the "delaying amendment" from its filing. This specific clause typically prevents a registration statement from becoming automatically effective, thereby granting the SEC greater control over the timing of the approval.
With the removal of this amendment, the registration is now set to automatically take effect under Section 8(a) of the Securities Act of 1933. This procedural change positions Canary Funds for a potential ETF launch on November 13, contingent upon Nasdaq granting final approval for its 8-A filing.
Regulatory Momentum Surrounding Auto-Effective Filings
According to Eleanor Terrett, the timing of the launch could be influenced by the government's operational status, depending on whether SEC staff have concluded their review or if further comments are issued. Nevertheless, the general sentiment from regulatory bodies appears to be supportive.
SEC Chair Paul S. Atkins has previously expressed endorsement for companies utilizing the auto-effective route to advance their offerings during periods of government shutdown.
While not making specific remarks about the XRP ETF, Atkins acknowledged that firms such as Bitwise and Canary were correctly applying the statutory 20-day waiting period mechanism. This same procedural approach facilitated the recent launches of SOL, HBAR, and LTC ETFs earlier in the week, establishing a precedent for the XRP product.
Growing Optimism Within the XRP Community
The updated filing for the Canary XRP ETF outlines a structure designed to provide investors with exposure to the price movements of XRP through shares listed on Nasdaq. The trust's net asset value will mirror the CoinDesk XRP reference rate. Various custodial responsibilities will be managed by institutions including CSC Delaware Trust Company, Gemini Trust Company, and BitGo Trust Company.
Momentum surrounding the XRP ETF continues to grow, with many within the cryptocurrency community viewing this as a critical development for digital asset investment products. Should the approvals from the SEC and Nasdaq proceed without significant hurdles, Canary's XRP ETF may soon become part of the expanding array of regulated crypto funds accessible to investors.