Introduction to the First US Spot XRP ETF
The cryptocurrency market is on the cusp of a significant development with the impending launch of the first US spot XRP ETF. The Canary XRP ETF has taken a crucial step towards its listing by filing Form 8-A12(b) on November 10th, which formally registers the Fund’s shares under Section 12(b) of the Securities Exchange Act. This move brings the ETF closer to trading, with the document signed by Steven McClurg confirming Nasdaq’s approval of the listing application and linking it to file number 333-282545 in the SEC’s EDGAR system.
This development is significant as it transitions Canary from the lengthy regulatory queue into the technical “ready phase” of the Nasdaq ETF process. According to Nasdaq’s launch steps, the next critical step for Canary is to file Form 8-A by 12:00 p.m. ET the day before launch. Following this, the ETF’s S-1 registration statement must be declared effective, after which trading can commence once the ETF’s symbol and start date are announced in a daily listing or information circular.
Understanding the Regulatory Process
Canary’s October 24 S-1/A amendment introduced language invoking Section 8(a), an automatic provision that allows the registration to become effective approximately 20 days after filing, unless the SEC objects. Given this timeline, the window for effectiveness points to November 14th ET, suggesting that Nasdaq could release its daily listing late in the day or early on November 15, when operations are already underway. This amendment also confirmed Nasdaq as the venue, replacing the previous Cboe-BZX reference, and established the proposed ticker XRPC.
The same amendment detailed a basket size of 10,000 shares, named Gemini and BitGo as custodians, and indicated that seed funding totaled 10,000 shares at $25, or $250,000. These specifics provide insight into the ETF’s structure and operational framework, offering clarity for potential investors and market participants.
Implications of the 8-A Filing
The 8-A filing itself is a listing registration and does not authorize trading. Instead, it works in conjunction with the S-1 registration, which allows for the issuance of shares. Only when both are in force and the Nasdaq circular mentions XRPC can market makers publish prices. Additionally, the XRP ETF requires DTCC/DTC permission for the back-office clearance that enables electronic settlement of creations and redemptions, an operational step often misunderstood as regulatory approval.
If the SEC allows S-1 to go into effect on time, Canary’s XRP ETF could begin trading within one to three sessions, following the typical process where the 8-A filing appears a few days before the S-1 becomes effective, followed by the publication of the daily list, and then the listing and commencement of trading.
Market Expectations and Projections
The market is keenly watching the launch of XRPC to see if it can attract significant inflows, similar to those seen in Bitcoin and Ethereum ETFs. US spot Bitcoin funds have experienced cumulative net inflows of over $50 billion this year, while ETH spot ETFs have seen fluctuations in the tens of billions, indicating a clear but narrower addressable market for non-BTC assets. Analysts project that the XRP ETF could range from a few hundred million to several billion dollars in its first month, depending on factors such as fees, authorized participant onboarding, and wirehouse distribution.
The success of XRPC will be closely monitored, given its potential to open up new investment avenues in the cryptocurrency market. With the clock ticking on the SEC, unless staff action disrupts the Section 8(a) schedule, registration could automatically take effect later this week, leaving only the publication of the daily list by Nasdaq to mark the start of trading.
For more information on this developing story, please refer to the original article at https://cryptoslate.com/new-xrp-etf-filing-could-be-the-canary-in-the-crypto-mine-this-week/.
