Following the successful introduction of Bitcoin and Ethereum spot ETFs, the U.S. financial market is poised to welcome its first exchange-traded fund tracking XRP, the third-largest cryptocurrency by market value. The anticipated “Canary XRP ETF,” filed by asset manager Canary Capital, could begin trading on the Nasdaq as early as this Thursday under the ticker “XRPC.”
According to a recently submitted Form 8-A with the U.S. Securities and Exchange Commission (SEC), the new ETF will offer investors a regulated and accessible way to gain exposure to XRP without the complexities of direct crypto custody. With a management fee of 0.50%, shares will be available through major brokerage platforms such as Fidelity and E*Trade.
The launch represents a significant step in bridging digital assets with traditional finance. By eliminating technical barriers, the Canary XRP ETF is expected to attract institutional and retail investors who have been hesitant to hold cryptocurrencies directly. Moreover, the fund’s requirement to physically hold XRP tokens is likely to generate substantial buying pressure, potentially strengthening XRP’s market position.
XRP, with a current market capitalization of approximately $141 billion, ranks behind only Bitcoin and Ethereum. The approval of a spot XRP ETF follows landmark regulatory clearances for Bitcoin and Ethereum ETFs earlier in 2024, signaling a growing acceptance of diverse crypto-based financial products by U.S. regulators.
Despite the optimistic outlook, market reaction has been mixed. XRP’s price experienced a brief surge followed by a pullback after the ETF announcement, reflecting cautious profit-taking amid heightened volatility. Still, trading volume saw a notable spike, indicating strong investor interest.
Industry experts view the upcoming XRP ETF as a key development in the institutionalization of cryptocurrency markets, paving the way for further integration of digital assets into mainstream investment portfolios.
