Update on Canary Capital's XRP ETF S-1 Coming Soon

From Delay to Trendsetter

Canary Capital's original S-1, filed in July 2025 under the ticker symbol XRPE, included a standard SEC "standstill clause" (Section 8(a)), which gives regulators 45–90 days to object—a procedural hurdle that has delayed previous altcoin offerings like Solana. The updated filing, filed on October 24 and effective November 13, barring an override, removes this hurdle, citing automatic approval under the Investment Company Act if no action is taken.

The ETF will track the spot price of XRP through direct holdings in Ripple's custody account, with in-kind creation/redemption to minimize premiums, similar to BlackRock's IBIT blueprint.

Canary, a $2.5 billion asset management (AUM) firm founded by former Goldman Sachs executives, is aiming for a 0.25% fee structure — competitive with the 0.19-0.30% fees of ETH ETFs — targeting $1 billion in first-year AUM from institutions concerned about XRP’s SEC implications by 2023. According to the filing notes, the revision reflects “evolving regulatory conversations,” referring to the SEC’s quiet approval following Trump’s executive order on cryptocurrencies.

New Target to Ripple

An XRP spot ETF would represent a major structural shift in how traditional investors interact with the Ripple ecosystem. Unlike Bitcoin or Ethereum, XRP is explicitly designed for cross-border payments and liquidity bridging, serving as the core digital asset in Ripple’s On-Demand Liquidity (ODL) network.

A listed ETF product would provide regulated investors with access to XRP’s fundamental utility in global payments without the complexities of self-custody or on-chain transactions.

For Canary Capital, the move also sets it apart from larger ETF issuers like BlackRock and Fidelity, which dominate the Bitcoin and Ethereum space. By focusing on XRP, Canary is trying to capture a niche but potentially high-growth part of the institutional cryptocurrency market — one that is more tied to actual financial infrastructure than speculative token economics.

The ETF is expected to be physically backed, meaning it will hold XRP directly rather than using futures contracts. Custody will likely include regulated digital asset custodians with SOC-2-compliant infrastructure, potentially including partners that service other crypto ETFs.

Evaluation and Conclusion

Canary Capital’s updated S-1 filing for a spot XRP ETF marks a turning point in the evolution of the crypto market. It reflects a maturing regulatory environment where alternative Layer 1 assets are finally making their way into mainstream portfolios. While there are still many hurdles—from SEC approval to market surveillance requirements—the fact that such filings are moving forward illustrates a broader trend: cryptocurrencies are no longer an experimental asset class but an integral part of global capital markets.

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