The first spot XRP ETF, registered under the Securities Act of 1933, launched on Nasdaq after SEC approval, marking a milestone for XRP investors by offering direct exposure to the cryptocurrency’s price movements through a regulated fund.
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Nasdaq’s certification enabled the XRP ETF’s launch at Thursday’s market open, following a 20-day review period.
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Canary Capital’s fund, ticker XRPC, becomes the sixth single-crypto asset ETF after Bitcoin, Ethereum, Solana, Litecoin, and Hedera.
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Regulatory clarity from SEC leaders has paved the way, with early trading volumes for similar altcoin ETFs exceeding $50 million on debut days.
Discover the launch of the spot XRP ETF on Nasdaq and its implications for crypto investors seeking regulated access to XRP. Stay ahead with expert insights on this pivotal development in cryptocurrency markets.
What is the Spot XRP ETF and How Does It Work?
The spot XRP ETF is an exchange-traded fund that provides investors with direct exposure to the price of XRP, the native cryptocurrency of the Ripple network, without requiring them to hold the asset directly. Registered under the Securities Act of 1933, this fund, managed by Canary Capital and traded under the ticker XRPC, went live on Nasdaq after formal approval. It tracks XRP’s spot price in real-time, allowing traditional investors to participate in cryptocurrency markets through familiar brokerage accounts, with the ETF holding actual XRP tokens to mirror market performance.
How Has Regulatory Approval Shaped the Launch of the Spot XRP ETF?
The approval process for the spot XRP ETF involved a streamlined 20-day automatic review period initiated by Canary Capital’s filing of Form 8-A under Section 8(a) of the Securities Act of 1933. Nasdaq Regulation’s Eun Ah Choi submitted a letter to the SEC’s Division of Corporation Finance on Wednesday at 5:30 PM ET, confirming the fund’s certification for listing. This clearance removed any delaying amendments, allowing the ETF to become effective and ready for trading at Thursday’s U.S. market open. Nate Geraci, President of Nova Dius Wealth, highlighted the significance on social media, noting it as the sixth single-crypto asset ETF following Bitcoin, Ethereum, Solana, Litecoin, and Hedera. Eleanor Terrett, host of the Crypto In America podcast, confirmed the effective status, emphasizing Nasdaq’s role in clearing XRPC for launch.
Canary Funds CEO Steven McClurg expressed enthusiasm in a statement to Crypto In America, stating, “We are very excited to go effective with the first single-token spot XRP ETF. This would not have been possible without the leadership of Chairman Atkins, Commissioner Pierce, and all the other fine people at the SEC who are pro-free markets.” This launch underscores a shift toward greater regulatory clarity for altcoin products. Earlier in the year, similar approvals were granted for spot ETFs tied to Solana, Litecoin, and Hedera, demonstrating the SEC’s evolving framework for digital assets.
Bitwise’s Solana ETF, for instance, achieved $56 million in first-day trading volume, rising to $72 million on the second day, according to market reports. REX-Osprey’s XRP futures ETF, which debuted in September, recorded $24 million in volume within its first 90 minutes and grew to over $100 million in assets under management by October’s end. These precedents illustrate the strong investor interest in regulated crypto exposure.
SEC Chair Paul Atkins has played a key role in fostering this environment. In remarks at the Philadelphia Fed Fintech Conference, Atkins argued that most crypto tokens in circulation should not be automatically classified as securities. He stated, “An investment contract doesn’t persist solely because the underlying asset trades on-chain.” Atkins advocated for a nuanced regulatory approach, distinguishing tokens based on their use and context rather than past transactions. He used an analogy: “A token is no more a security because it was once part of an investment contract transaction than a golf course because it used to be part of a citrus grove investment scheme.” He further emphasized the need for clarity, saying, “To the investor trying to discern the difference between buying a tokenized share of stock and buying a collectible in a video game, we should offer more than a web of enforcement actions.”
This perspective aligns with broader legislative efforts. The U.S. House of Representatives recently voted 222-209 to end the country’s longest government shutdown, lasting 42 days, with President Donald Trump signing the bill into law at 9:45 PM ET. The resolution restores federal operations, potentially stabilizing the regulatory landscape for financial innovations like crypto ETFs. Additionally, the Senate Agriculture Committee’s bipartisan market structure discussion, led by Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ), aims to address crypto oversight. However, the draft lacks provisions for decentralized finance (DeFi) and anti-money laundering, drawing criticism from industry stakeholders.
A leader from a crypto trade association commented to Crypto In America, “The bill is a good start, but still has a long way to go before industry can support it.” Insiders suggest the committee may incorporate DeFi language via the Blockchain Regulatory Certainty Act (BRCA) from the Senate Banking Committee, further enhancing pathways for products like the spot XRP ETF.
Canary Capital’s broader ambitions in the space include a filing for the first U.S. ETF tied to MOG Coin, a memecoin on the Ethereum network. Submitted via an S-1 registration statement to the SEC on Wednesday, this move highlights the firm’s commitment to diversifying crypto investment options under regulated structures.
Frequently Asked Questions
What Does the Approval of the First Spot XRP ETF Mean for XRP Investors?
The approval of the spot XRP ETF provides XRP investors with a regulated vehicle to gain exposure to the asset’s price without direct custody risks. Traded on Nasdaq under ticker XRPC, it allows participation through standard brokerage accounts, potentially attracting institutional capital and boosting liquidity, as seen with prior altcoin ETFs that amassed millions in trading volume shortly after launch.
Is the Spot XRP ETF Now Available for Trading on Major Exchanges?
Yes, the spot XRP ETF became available for trading at the U.S. market open on Thursday following Nasdaq’s certification and the SEC’s non-objection during the review period. Managed by Canary Capital, it offers real-time tracking of XRP’s spot price, making it accessible to a wide range of investors via established exchange platforms.
Key Takeaways
- Historic Launch: The spot XRP ETF marks the first single-token XRP fund under the 1933 Act, launching on Nasdaq after a routine SEC review, expanding regulated crypto options.
- Market Momentum: Similar ETFs for Solana and others have seen rapid volume growth, with Solana’s hitting $72 million in two days, signaling strong demand for altcoin products.
- Regulatory Progress: Insights from SEC Chair Paul Atkins emphasize distinguishing tokens from securities, urging clearer guidelines to support innovation in digital asset markets.
Conclusion
The launch of the spot XRP ETF represents a significant advancement in blending cryptocurrency with traditional finance, driven by regulatory approvals and expert leadership at the SEC. As investor interest in altcoins like XRP continues to grow, this ETF opens doors for broader participation while highlighting the need for refined frameworks around regulatory clarity for crypto ETFs. Looking ahead, ongoing legislative efforts promise further stability, encouraging investors to explore these opportunities with confidence.
