Canary Capital Pushes XRP ETF Closer to Market Approval with SEC Amendment

Canary Capital is moving closer to securing regulatory approval for its cryptocurrency investment products. On Friday, the firm filed an updated registration document with the U.S. Securities and Exchange Commission (SEC) for its proposed Canary XRP exchange-traded fund (ETF). The submission, titled Pre-Effective Amendment No. 2 to the Form S-1 Registration Statement, represents another step forward in the ongoing review process that could lead to final market approval.

Key Updates in the Amended XRP ETF Filing

According to the filing, the Canary XRP ETF will trade on the Cboe BXZ Exchange using the ticker symbol XRPC. The fund’s main goal is to track the market value of XRP held by the trust, minus any operating expenses or related liabilities. Essentially, it aims to mirror XRP’s price performance through a traditional investment format.

The ETF’s valuation will rely on a pricing reference designed by CoinDesk Indices, which acts as the benchmark provider. This index applies a 60-minute time-weighted average price based on the XRP-USD CCIXber Reference Rate, using transaction data drawn from several leading XRP trading platforms. The approach helps establish a fair and consistent benchmark for the trust’s XRP holdings by smoothing out price volatility and avoiding the influence of short-term price spikes.

Through this structure, investors can gain exposure to XRP without directly holding the cryptocurrency. Buying and selling shares of the ETF through a standard brokerage account removes many of the complexities and risks tied to self-custody, such as private key management and digital wallet security.

To safeguard its digital assets, Canary has partnered with Gemini Trust Company and BitGo Trust Company as custodians. These firms are responsible for securely storing the trust’s XRP and ensuring its protection. The updated document also confirms a reduced sponsor fee of 0.50%, reflecting a lower cost for investors compared to earlier drafts of the filing.

Canary Capital Updates Solana ETF Filing

Alongside progress on its XRP product, Canary Capital has also filed a new amendment for its Canary Marinade SOL ETF, which centers on Solana. The filing notes that the ETF carries a 0.50% expense ratio and will allow investors to receive the full staking rewards generated from Solana’s network, with no portion retained by the sponsor. This structure could make the product more attractive to those looking for both Solana exposure and additional returns through staking.

ETF analyst Eric Balchunas noted that Canary has filed Amendment No. 6 for the Solana ETF, a signal that the fund may be approaching its final approval phase. 

XRP and Solana See Shifts in Funds Inflows

While anticipation continues to build around both the XRP and Solana ETFs, recent investment inflows into these digital assets have eased. CoinShares’ weekly report on digital asset fund flows, released on October 13, shows that:

• Solana saw inflows of approximately $93.3 million last week, reflecting continued investor interest.
• XRP recorded around $61.6 million in inflows over the same period, showing steady engagement in the market.
• Despite the significant amounts, the report notes that inflows have slowed, suggesting some investors are waiting for the SEC to finalize ETF approvals before committing additional capital.

Financial analyst Zach Rector believes that ETF authorization could provide a major price boost for XRP once the SEC completes its review. He indicated that “after this government shutdown ends the XRP ETFs are going live. We will be well on our way to double digits.”

At the time of writing, XRP was at $2.52, down 2% over the past 24 hours, while Solana was at $203, up about 3% during the same period.