Canary Funds has positioned its exchange-traded fund tracking XRP to begin trading on November 13, using a regulatory mechanism that removes the Securities and Exchange Commission's direct control over the launch timeline. The firm removed a standard delaying provision from its registration documents, allowing the fund to become effective automatically after a 20-day waiting period unless regulators actively intervene. Nasdaq approval of the listing remains the final hurdle.
What to Know:
- Canary Funds removed the "delaying amendment" from its S-1 filing, triggering an automatic 20-day countdown that could make its XRP ETF effective on November 13 without requiring explicit SEC approval.
- The strategy mirrors the approach used to launch spot ETFs for Solana, Hedera, and Litecoin during the government shutdown, exploiting a statutory window when normal regulatory review is constrained.
- XRP's filing lacks the iterative SEC staff engagement that preceded Solana's approval, creating uncertainty about whether regulators will allow the automatic effectiveness to proceed.
Filing Strategy Bypasses Traditional Review Process
Canary's updated S-1 registration statement no longer includes the delaying amendment that typically gives the SEC discretion over approval timing. Eleanor Terrett, host of Crypto In America, reported that this change starts the statutory clock running. The registration becomes effective automatically after 20 days unless the SEC issues a stop order or demands additional revisions.
The November 13 target date assumes Nasdaq approves the Form 8-A filing, which authorizes the fund to list and trade on the exchange.
That exchange clearance represents the remaining operational requirement. If both conditions are met and the SEC does not intervene, the fund could become the first US spot XRP ETF to reach the market.
This is not an untested approach.
Bitwise and Canary used the same statutory waiting period earlier this week to launch spot crypto ETFs tracking Solana, Hedera, and Litecoin. Those funds went live during the federal government shutdown, when standard regulatory dialogue was effectively suspended. Terrett noted both firms "relied on the 20-day waiting period to go public during the shutdown," capitalizing on a moment when back-and-forth review was limited.
Regulatory Uncertainty Clouds Launch Timeline
The government shutdown remains a variable. Terrett cautioned that "the government reopening could affect the timing, potentially moving it up if the filing is complete and the SEC is satisfied, or back if staff propose additional comments." The November 13 date could shift in either direction depending on how quickly SEC staff reengage and whether they push for changes to the registration documents.
SEC Chair Paul Atkins offered indirect support for the strategy.
While not addressing crypto ETFs specifically, Atkins stated he "was pleased to see companies like MapLight using the 20-day statutory waiting period to go public during the shutdown." Terrett characterized that comment as significant because it suggests the agency recognizes the legitimacy of using the statutory clock rather than negotiated timing with staff.
XRP faces different circumstances than Solana.
Bloomberg senior ETF analyst Eric Balchunas observed that "XRP docs didn't have the same comments back-and-forth with the SEC that Solana had," adding "that was one reason issuers felt they were ready." Solana's filings underwent iterative engagement with SEC staff before the shutdown, giving issuers confidence in their documentation. Canary's XRP fund is testing the process with less visible regulatory dialogue.
The outcome is binary. If Nasdaq clears the Form 8-A and the SEC allows the 20-day period to expire without forcing new comments, the XRP fund begins trading on November 13. If the SEC intervenes with additional comments on the S-1 or pressures the exchange listing, it would signal the Commission tolerates automatic effectiveness for certain digital assets but not XRP.
Understanding the Regulatory Framework
The S-1 form is a registration statement required for securities offerings, containing detailed information about the fund's structure, risks, and operations. Companies typically include a delaying amendment in their S-1 filings, which prevents the registration from becoming automatically effective and gives the SEC control over approval timing. By removing this provision, Canary triggered the statutory 20-day waiting period under the Securities Act of 1933.
Form 8-A is a separate filing required to register a class of securities under the Securities Exchange Act of 1934. This form allows the security to be listed and traded on a national exchange like Nasdaq. The exchange must approve this listing application independently of the SEC's review of the underlying S-1 registration.
Closing Thoughts
Canary Funds is attempting to launch the first US spot XRP ETF through a statutory pathway that limits the SEC's discretionary control over timing, following the same mechanism used for recent Solana, Hedera, and Litecoin funds. The November 13 launch date depends on Nasdaq approval and whether the SEC chooses to intervene during the automatic effectiveness period, creating uncertainty about whether regulators will treat XRP similarly to other digital assets that have cleared this hurdle.