The launch of the first US spot XRP ETF is on the horizon following the filing of Form 8-A12(b) by Canary XRP ETF on Nov. 10. This filing marks a significant step in the exchange-listing process, formally registering the fund’s shares under Section 12(b) of the Securities Exchange Act.
Signed by Steven McClurg, the document confirms that Nasdaq has approved the listing application and links the product to File No. 333-282545 on the SEC’s EDGAR system.
Progress towards launch and timeline
The filing has propelled Canary into Nasdaq’s technical “ready” phase of the ETF process. As per Nasdaq’s launch steps, Canary must submit Form 8-A by 12:00 P.M. ET the day before the launch.
Once the ETF’s S-1 registration statement is declared effective, trading can commence upon the announcement of the ETF’s symbol and start date in a daily list or information circular.
Canary’s S-1/A amendment on Oct. 24 invoked Section 8(a), allowing the registration to become effective about 20 days after filing if the SEC raises no objections. Counting from Oct. 24, this window points to around Nov. 14 ET, with the possibility of Nasdaq publishing its daily list late on Nov. 14 or early on Nov. 15.
The amendment also confirmed Nasdaq as the venue, proposed the ticker XRPC, specified a 10,000-share basket size, named Gemini and BitGo as custodians, and indicated seed funding of 10,000 shares at $25 each, totaling $250,000.
Implications of the 8-A filing for the XRP ETF launch
The 8-A filing does not authorize trading but serves as the listing registration. The S-1 is essential for securities registration, enabling the issuance of shares.
Trading can only commence once both filings are active, the Nasdaq circular names XRPC, and the XRP ETF attains DTCC/DTC eligibility for back-office clearance.
If the SEC allows the S-1 to go effective on time, Canary’s XRP ETF could start trading within one to three sessions. The sequence typically involves the appearance of the 8-A filing a few days before the S-1 becomes effective, followed by the publication of the daily list, and finally, the listing and trading of the XRP ETF.
Market observers are keen to see if XRPC can attract early inflows similar to Bitcoin and Ethereum ETFs. US spot Bitcoin funds have seen over $50 billion in net inflows this year, while spot ETH ETFs have experienced fluctuations in the tens of billions.
Analysts anticipate initial inflows for the XRP ETF ranging from a few hundred million to several billion dollars in the first month, depending on factors such as fees, authorized participant onboarding, and wirehouse distribution.
The ball is now in the SEC’s court, with the registration potentially becoming effective later in the week if the Section 8(a) timeline proceeds without any interruptions. Once Nasdaq publishes the daily list, trading can commence. Until then, the fund is approved for listing but remains inactive.
