XRP exchange-traded investment products are finally here! Canary Capital’s Spot XRP ETF “XRPC” is now expected to begin trading later this week, according to the company’s 8-A filing with the US Securities & Exchange Commission (SEC) on Monday.
Government shutdown
Markets had already advanced on Sunday as a group of Democrats struck a deal that advances legislation, bringing the world’s largest economy one step closer to ending the shutdown. As of Tuesday, the shutdown is on its 42nd day, marking the longest in US history. The deal still needs to be passed by both chambers and signed by the president.
XRP and Hedera (HBAR) saw gains above 10% from Sunday through Monday morning, as speculation of the nearing resumption of government operations fuelled the broader crypto (and equity) market rally.
XRP ETF listings
Canary submitted an 8-A filing with the SEC on Monday, after the Nasdaq stock exchange approved its fund. The filing points to a release either on Wednesday or Thursday (as Tuesday is a US public holiday), according to Eric Balchunas, an ETF analyst at Bloomberg.
On Monday, five new XRP products appeared on the DTCC’s (Depository Trust & Clearing Corporation) website, filed by Canary Capital, Bitwise, Franklin Templeton, and 21Shares.
XRP, the fourth-largest cryptocurrency, now has 11 ETFs on this list. While listings on DTCC do not suggest regulatory approval, they do indicate the funds are “pre-launch”. This update further buoyed the payment token’s rally, as traders saw fresh ETF listing activity as a positive sign that XRP is gaining traction on Wall Street.
Nate Geracci, host of the ETF Prime Podcast, tweeted on Monday: “Government shutdown ending = spot crypto ETF floodgates opening… In the meantime, could see first ‘33 Act spot xrp ETF launch this week.”
Also, just last week, Franklin Templeton updated its S-1 filing for its XRP ETF, in which it removed a legal clause that previously allowed the SEC to delay the fund's approval. The fund is “looking to launch this month,” tweeted James Seyffart, an analyst at Bloomberg Intelligence.
XRP in for a ride
While sentiment was overall positive, some investors may wonder whether speculation around imminent approvals may be reversed when the fund’s official, definitive approval arrives, if the underlying coin’s price falls. “Buy the rumour, sell the news,” the saying goes.
Traders observed such sell-offs when both Bitcoin and Ether received their first wave of ETF approvals in early 2024; both coins saw double-digit losses in the weeks that followed.
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