In a major development for the digital asset industry, Canary Funds has filed an updated S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for its spot XRP exchange-traded fund (ETF) signaling that the long-awaited product may be closer to launch than ever. The revised filing removes a key “delayed amendment” clause that had previously granted the SEC control over the fund’s effective date, a procedural shift widely interpreted as a sign of imminent approval.
According to sources familiar with the filing, Canary Funds is targeting a November 2025 launch, pending final clearance from the SEC. The move positions XRP as the next major cryptocurrency after Bitcoin and Ethereum to gain direct ETF access in the United States, potentially opening the asset to billions of dollars in institutional capital.
A Step Closer to the First Spot XRP ETF
The S-1 form is a mandatory disclosure document that U.S. issuers must file before offering securities to the public. Canary Funds’ latest amendment, submitted this week, eliminates the “delaying amendment” language that effectively allowed the SEC to pause the ETF’s effectiveness until further notice.
By removing that clause, Canary is effectively signaling its readiness for launch and suggesting that dialogue between the fund and the SEC has progressed significantly.
“The removal of the delaying amendment typically indicates that the issuer believes the registration is nearing effectiveness,” said one ETF attorney familiar with the matter. “It’s often the last procedural step before trading can begin.”
The update also includes finalized details on custody, pricing methodology, and authorized participants (APs) all signs of a mature filing. Industry analysts note that this version mirrors the structural elements of recently approved spot Bitcoin and Ethereum ETFs, implying a similar regulatory trajectory.
The Growing Case for an XRP ETF
XRP has long been viewed as a prime candidate for ETF approval due to its liquidity, market depth, and institutional-grade infrastructure. With a daily trading volume exceeding $2 billion and listings across nearly all major exchanges, the asset meets many of the technical benchmarks the SEC has historically cited for market surveillance and investor protection.
Canary’s ETF proposal seeks to track the spot price of XRP, leveraging a blend of regulated market data and third-party pricing feeds. The XRP held in custody would be managed by a qualified U.S. custodian, ensuring compliance with existing securities and digital asset regulations.
The fund aims to list on a major exchange likely Cboe BZX or NYSE Arca pending final exchange approval.
If approved, the Canary XRP ETF would become the first spot product offering direct exposure to XRP in U.S. markets, following the precedent set by spot Bitcoin ETFs earlier in 2024 and Ethereum ETFs later in the year.
A Regulatory Turning Point After Years of XRP Uncertainty
The filing marks a symbolic turning point in XRP’s long and controversial history with U.S. regulators. The asset’s issuer, Ripple Labs, spent years entangled in a legal battle with the SEC over whether XRP constitutes a security. That dispute largely ended in 2023, when a federal judge ruled that XRP sales on secondary markets did not qualify as securities transactions a landmark decision that redefined how digital assets are treated under U.S. law.
Since then, institutional sentiment toward XRP has steadily improved. Ripple has secured partnerships with financial institutions in Europe, the Middle East, and Asia, and U.S. trading platforms have relisted XRP after years of caution.
Canary Funds’ ETF initiative is seen as the natural next step bringing regulatory legitimacy and Wall Street-grade access to one of the crypto industry’s oldest and most battle-tested assets.
“A spot XRP ETF would represent not just validation for XRP, but a signal that digital assets as a whole are moving into a post-litigation, regulated growth phase,” said crypto market strategist Emma Liu of BlockView Analytics.
Why Institutional Investors Are Watching Closely
The approval of a spot XRP ETF could have major implications for institutional adoption. Traditional investors from hedge funds to pension managers often face internal restrictions that prevent them from holding crypto directly. ETFs solve that problem by offering exchange-listed, custodian-backed exposure that fits within existing compliance frameworks.
JPMorgan analysts have previously noted that XRP’s utility in cross-border settlements and liquidity bridging could make it particularly attractive to institutional investors seeking diversification beyond Bitcoin and Ethereum.
If launched, Canary’s fund could attract substantial inflows from macro and FX-focused portfolios, given XRP’s long-standing association with payment infrastructure rather than pure speculation.
Market Impact: What a November Launch Could Mean
Market participants are already reacting positively to the filing update. XRP prices climbed modestly following the news, as traders priced in the possibility of ETF approval within weeks. Analysts expect the launch could trigger a multi-billion-dollar liquidity influx, similar to the spike Bitcoin experienced following its ETF debut earlier this year.
A spot XRP ETF would:
Increase liquidity across both crypto and traditional exchanges
Improve price discovery through regulated market mechanisms
Boost institutional confidence in the broader digital asset sector
Solidify XRP’s role as one of the “Big Three” regulated digital assets alongside BTC and ETH
Moreover, the fund’s success could set the stage for additional altcoin ETFs, including Solana (SOL), Cardano (ADA), and Avalanche (AVAX), which have all seen speculative filings in recent months.
Ripple’s Role and Industry Implications
Though Canary Funds is an independent asset manager, Ripple’s ongoing enterprise partnerships and global payment integrations provide crucial validation for XRP’s underlying utility. Ripple has distanced itself from direct ETF involvement but continues to emphasize the importance of regulated market infrastructure for long-term adoption.
“The more institutional access points there are for XRP, the healthier the market becomes,” Ripple CEO Brad Garlinghouse said in a recent interview. “We’ve always believed that utility and transparency are the real drivers of sustainable growth.”
If the Canary ETF launches successfully, it could further cement Ripple’s reputation as the first major blockchain company to achieve true financial integration at a global scale.
The Road to November
With the updated S-1 filed and procedural hurdles narrowing, all eyes now turn to the SEC. Approval could come as early as mid-November, in time for a late-month listing.
Market watchers are optimistic. The SEC’s recent approvals of spot ETH products and its softened stance on digital asset-based ETFs suggest that the agency is gradually embracing a framework of coexistence rather than confrontation.
Should Canary’s XRP ETF go live as expected, it would mark a historic milestone: the moment when XRP officially joined the regulated ranks of mainstream investable assets.
Conclusion: The Start of XRP’s Institutional Era
The updated filing from Canary Funds represents more than a regulatory milestone it symbolizes XRP’s evolution from a once-controversial token to a recognized institutional asset.
If the November target holds, the launch of a spot XRP ETF could usher in a new era for digital asset investment one defined by compliance, accessibility, and the merging of crypto and capital markets.
With Bitcoin and Ethereum ETFs already transforming market structure, XRP’s turn is next and this time, the stage is set for the digital payments token to prove its worth in the world’s most regulated and influential financial ecosystem.
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