XRP ETF starts trading on Nasdaq this Thursday! Government shutdown can't stop 4 companies from going public.

Documents submitted to the U.S. Securities and Exchange Commission (SEC) by Nasdaq on Wednesday show that the company has certified the Canary XRP ETF and approved its listing, which will start trading on Thursday under the ticker symbol XRPC. Despite the government shutdown lasting over 40 days, the Crypto Assets ETF is still set to be listed, following the SEC's issuance of guidance clarifying that companies seeking to list do not need to submit a “latency amendment” for the procedure to take effect after 20 days.

Canary XRPC officially opens for trading on Thursday

(Source: SEC)

Nasdaq plans to list the Canary Capital Group's exchange-traded fund, which tracks the price of XRP, the fourth largest Crypto Asset by market capitalization. Documents submitted to the SEC by Nasdaq on Wednesday indicate that the company has verified the Canary XRP ETF and approved its listing. According to related links, Nasdaq also stated that the ETF will be listed on Thursday under the stock code XRPC.

This document signed by Steven McClurg, CEO of Canary Funds, confirms that Nasdaq has approved the listing application. The document also associates the product with document number 333-282545 in the SEC's EDGAR system. This document marks Canary's exit from the long regulatory approval queue and its entry into the technical “ready” stage of the Nasdaq ETF process.

According to Nasdaq's issuance process, Canary must submit Form 8-A by noon Eastern Time the day before the issuance. As part of the process, companies must submit Form 8-A, and Canary submitted the form for its XRP ETF on Tuesday. The S-1 registration statement for the ETF must declare effective, and trading can begin once the daily listing or information announcement publishes the ETF's code and start date.

Canary added a provision citing Section 8(a) in the S-1/A amendment submitted on October 24, which has automatic effectiveness. This means that if the SEC does not raise any objections, the registration will become effective approximately 20 days after submission. Counting from October 24, this time window points to around November 14 in Eastern Time.

The amendment confirms Nasdaq as the trading venue, replacing the previous Chicago Board Options Exchange (Cboe) code BZX, and sets the proposed stock code XRPC. The amendment also stipulates an issuance scale of 10,000 shares, designating Gemini and BitGo as custodians, and indicates that the total amount of seed round financing is 10,000 shares at $25 per share, amounting to $250,000.

SEC Guidance Innovation During Government Shutdown

Despite the government shutdown lasting over 40 days, the crypto assets ETF can still be listed. Previously, the SEC issued guidance that clarified the process for companies to go public. The SEC stated that companies do not need to submit a so-called “latency amendment” to file an S-1 registration statement. The latency amendment means that the ETF will only become effective 20 days after submission, allowing the SEC time to process feedback from all parties. Additionally, the XRP ETF must also meet the specific listing standards approved by the SEC in September.

This program plays a key role in the issuance process of the XRP ETF. During the government shutdown, most SEC employees were on leave and unable to handle routine approval work. If “latency revisions” and manual reviews are still needed, the launch of the XRP ETF will be indefinitely delayed. By allowing an automatic activation mechanism, the SEC has avoided excessive hindrance to market innovation while maintaining regulatory standards.

This regulatory flexibility demonstrates the new SEC leadership's friendly attitude towards the crypto assets industry. Under the leadership of free-market-supporting commissioners like Paul Atkins and Hester Peirce, the SEC is looking for a balance between investor protection and market innovation. This balance is particularly important in extreme situations like government shutdowns, as it ensures that the market does not come to a complete standstill due to political deadlock.

XRP ETF approval process innovation

Cancellation of latency amendment requirement: ETF does not need to submit latency amendments and will automatically take effect after 20 days.

Automatic Effect Mechanism: Citing Article 8(a), if there are no objections from the SEC, it will be automatically approved.

Applicable during suspension period: The process can still proceed even if SEC personnel are on leave.

Meets September Standards: Must comply with SEC approved pre-listing standards for Crypto Assets ETF.

Technical Automation: Reducing reliance on manual reviews and increasing approval efficiency

The 8-A document itself does not authorize trading. It serves only as a listing registration document, while the S-1 document provides securities registration, thereby allowing the issuance of stock. Market makers can only quote when both of these regulations are effective and XRPC is mentioned in the Nasdaq announcement. The XRP ETF also needs to obtain DTCC/DTC qualification, which provides backend clearing services, allowing subscriptions and redemptions to be settled electronically. This step belongs to the operational level rather than the regulatory level and is often misunderstood as approval.

4 institutions relay listing and capital inflow expectations

Other companies, including Bitwise, 21 Shares, WisdomTree, ProShares, and Grayscale, have also proposed similar XRP ETF plans. Sources told The Block that 21Shares plans to launch its XRP ETF after the government reopens. Bitwise will be the next issuer to launch an XRP spot ETF, followed by Franklin Templeton and 21Shares with their spot ETFs. This phenomenon of multiple institutions advancing simultaneously is very similar to the situation when the Bitcoin ETF was first approved in 2024.

The cryptocurrency ETF proposals, including those tracking Dogecoin (DOGE) and the XRP launched by Grayscale, may take effect as soon as November 23. This means that the market could see a wave of crypto ETF listings in the next two weeks. The Dogecoin ETF could be next, as REX Shares and Osprey Funds launched a Dogecoin ETF with the code DOJE in September, but the legal approach taken is different from that of the XRP ETF.

In September this year, REX Shares launched an ETF that tracks the price of XRP. Unlike other XRP ETF proposals, this ETF adopts a different legal structure and is registered under the Investment Company Act of 1940. According to its prospectus, this ETF primarily holds XRP directly and will invest at least 40% of its assets in shares of other XRP-related ETFs. This hybrid strategy contrasts with Canary's pure spot holding model.

The market is closely watching whether XRPC can attract early capital inflows like Bitcoin and Ethereum ETFs. So far this year, the cumulative net inflows of U.S. spot Bitcoin funds have exceeded $50 billion. In contrast, the scale of spot Ethereum ETFs fluctuates around several tens of billions of dollars, indicating the presence of a clear but smaller market for non-Bitcoin assets.

Analysts expect that the scale of the XRP ETF in its first month will be between hundreds of millions to billions of dollars, depending on factors such as fees, the participation of authorized participants, and the distribution by brokers. If we take 10% of the inflow of the Bitcoin ETF in its first month as a benchmark, the XRP ETF may attract an inflow of 500 million to 1 billion dollars in its first month. Such a scale of funds will have a significant impact on the market supply and demand for XRP, potentially driving the price to break through key resistance levels and challenge historical highs.

Currently, the timing is in the hands of the SEC. If the staff does not take any action to interfere with the timeline of Article 8(a), the registration may automatically take effect later this week. At that time, it will only await Nasdaq to release the daily trading list to officially mark the start of trading. Before Nasdaq issues that notice, the fund is still permitted to be listed but has not officially gone live for trading. Thursday's opening will be a critical moment to test the market's real demand for the XRP ETF.