XRP (XRP 0.91%) could be on the verge of a major turning point. The launch of the first exchange-traded fund (ETF) built around the token appears to be imminent. Canary Capital recently submitted a Form 8-A filing with the Securities and Exchange Commission (SEC), potentially setting the stage for the first spot ETF centered around XRP to be listed on the Nasdaq exchange either today or tomorrow.
Is the first-ever spot ETF for the token really on the precipice of hitting the market? And if so, what will it mean for investors?
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Is the Canary XRP ETF ready for prime time?
With a market capitalization of approximately $141 billion, XRP is now the third-largest cryptocurrency by market capitalization -- trailing behind only Bitcoin and Ethereum. While Tether does have a higher market cap at $183 billion, the stablecoin is often excluded when ranking cryptocurrencies by valuation.
XRP has demonstrated impressive staying power in the crypto space and built strong brand strength through its tech foundations, and there seems to be a high likelihood that Canary's XRP spot ETF will be able to begin trading this week -- or in the very near future.
CRYPTO: XRP
Key Data Points
Upon listing, the Canary XRP ETF would begin trading under the (NASDAQ:XRPC) ticker symbol and could be purchased through most major brokerages. The launch of the ETF could indirectly expand the market for the token. For example, investors who wanted exposure to the token but had yet to open a crypto wallet or an account on a crypto-trading platform could easily buy shares of the ETF through platforms such as E*Trade or Fidelity. The fund is expected to have an annual management fee of 0.5%.
Canary will presumably purchase XRP tokens to supply its ETF, which could help strengthen bullish valuation momentum. While investors in the ETF won't own the tokens directly, they will own equity in the fund that holds them.
The ETF built around the token would come with some extra regulatory protections that are absent from cryptocurrencies and the crypto market. On the other hand, the performance of XRP's token price is likely to be the biggest factor in shaping valuation performance for the ETF.
What does it mean for XRP?
While the Canary XRP ETF looks poised to be the first spot exchange-traded-fund for the token, it probably won't be the last. With the launch of new ETFs centered around the cryptocurrency, the token's integration into new financial instruments could wind up being a substantially positive performance catalyst.
