First US Spot XRP ETF Launches Thursday as Community Expects

The crypto community is set to welcome the launch of the first spot XRP exchange-traded fund (ETF) as Nasdaq has certified the listing of the Canary Capital XRP ETF. This official notification was sent to the U.S. Securities and Exchange Commission (SEC) on Wednesday, filing a Form 8-A for the Canary XRP ETF (XRPC).

Eric Balchunas, a senior ETF analyst at Bloomberg, noted on X that XRPC has received official listing approval from Nasdaq and predicted the launch will happen tomorrow. However, the SEC has not yet given final approval for trading, making the launch uncertain for now.

A milestone in the ETF landscape

Nate Geraci, president of NovaDius Wealth Management, reported on Thursday that Canary has launched the website for the Canary XRP ETF, hinting at an imminent trading launch. Geraci stated that Canary will be the first company to market with an XRP ETF, which will be the sixth single crypto asset to be listed in the ETF format, following Bitcoin (BTC), Ether (ETH), Solana (SOL), Litecoin (LTC) and Hedera (HBAR).

Despite the positive signs, other industry observers, including Eleanor Terrett of Crypto America, shared their caution. They pointed out that Nasdaq approved the XRPC for launch, but that the exchange's letter is merely a procedural step and does not authorize trading.

One commentator pointed out that the Nasdaq letter itself does not declare the ETF effective; it merely confirms that Nasdaq has approved the listing and supports the application for SEC approval. This reflects the routine nature of the process and does not confirm that trading will actually begin.

The long-awaited launch

The much-discussed launch of Canary's XRP ETF comes after weeks of speculation. ETF experts like Geraci have been predicting a debut in recent weeks, further adding to the excitement. The potential launch coincides with former President Donald Trump recently signing a bill into law ending a prolonged government shutdown in the United States.

Historically, Bitcoin and Ether ETFs began trading the day after their respective SEC approvals, while newer ETFs like Solana, Litecoin, and Hedera launched the next day after their listings, following the regulator's newly acquired procedures. Some observers have suggested that these new crypto funds were able to utilize "automatic effectiveness" provisions during the government shutdown, further easing their path to launch.

Frequently Asked Questions

What does the launch of the XRPC ETF mean for investors?
The launch of the XRPC ETF could present a significant opportunity for investors as it increases the accessibility of XRP as an investment asset. This could lead to broader adoption among traditional investors, potentially enhancing market liquidity and stability.

How does this launch compare to other crypto ETFs?
The XRPC ETF is the sixth of its kind, demonstrating growing interest in some crypto assets within the ETF structure. This could be a sign of a trend, with cryptocurrencies being taken more seriously in the financial markets and more products being developed to cater to them.

What can we expect if the SEC doesn't grant approval?
If the SEC doesn't grant approval, it would not only be a major disappointment for investors but could also cast a shadow over the credibility of the crypto market. This could result in volatility and uncertainty, with asset prices fluctuating based on market perceptions and speculative motivations.