A U.S.-based asset management firm, Canary Capital, is making strides in the crypto space with significant updates to its spot ETF proposal for XRP, targeting a launch date of November 13. This push forward is due to the removal of a deferment amendment, thus enabling the registration to become effective automatically.
How is the Approval Process Speeding Up?
The momentum gained from the recent introduction of Solana and HBAR ETFs by Canary Capital has paved the way for a similar approach with XRP. By altering its S-1 filing, the company aims for smoother approval. Eric Balchunas, a Bloomberg ETF strategist, highlighted that compared to Solana’s ETF, XRP’s application had notably less interaction with the SEC. He described it as a “bold move worth considering.”
Eleanor Terret from CNBC mentioned the crucial role of Nasdaq’s approval of the 8-A filing for the ETF’s launch. If the SEC, for any reason, does not object during the review phase, the ETF could go live even earlier than anticipated. There is a belief that SEC Chairman Paul S. Atkins endorses the automatic activation method, especially amid partial government shutdowns.
Can XRP ETFs Meet Sky-High Expectations?
Showing strong performance since its inception by Rex-Osprey, the XRP ETF rapidly surpassed the $100 million mark within just six weeks. Matt Hougan, Bitwise’s Chief Investment Officer, forecasts that these XRP ETFs could become billion-dollar entities quickly. Hougan stated to DL News,
“Despite widespread doubts about XRP in the cryptocurrency sphere, it has a firmly dedicated investor community heavily inclined towards purchasing.”
Presently, approximately 20 separate XRP ETF applications are in line for SEC approval, alongside 23 applications for Bitcoin and Solana ETFs, and 16 for Ethereum. Experts suggest that if clearance speeds up, XRP’s price might surge towards the $10 threshold.
Key Takeaways:
- The spot ETF for XRP by Canary Capital is expected to launch on November 13.
- Efforts to use automatic registration processes are underway to counteract potential regulatory delays due to government shutdowns.
- Riding on the success of the earlier launches, Canary Capital is optimistic about the XRP ETF’s performance in initial months.
With anticipation building, the crypto community and investors are closely monitoring these developments, which could bring significant activity and interest to the digital currency markets. The forthcoming weeks will likely unveil pivotal moments for XRP ETFs and the broader crypto investment landscape.
