The XRPC code flashing on the Nasdaq exchange screen announces a new stage in the integration of cryptocurrency with traditional financial markets. “XRP is one of the most mature and widely used digital assets in the world, and providing access to XRP through an ETF will drive the next wave of adoption and growth for this critical blockchain system.” declared Steven McClurg, CEO of Canary Capital, in an official press release.
On November 13, 2025, the Canary XRP ETF (code: XRPC) officially launched on Nasdaq, becoming the first spot XRP ETF in the United States.
The birth of this product not only signifies an important milestone for XRP itself but also reveals a profound transformation of the cryptocurrency market from the margins to the mainstream. It adopts a spot model, directly holding XRP tokens, which is fundamentally different from assets that can only gain exposure through derivatives.
1. Breaking the Ice: The Birth of the XRP ETF
The listing process of the Canary XRP ETF is a breakthrough in the history of cryptocurrency regulation, with its smooth approval surprising many market observers. The fund officially began trading on November 13, 2025, but had already received Nasdaq listing certification the day before.
● The ETF adopted a relatively unique registration method—it utilized the automatic effectiveness procedure under the Securities Act of 1933, bypassing the strict regulations of the Investment Company Act of 1940. This method sets a precedent for subsequent crypto ETFs.
● The fund management fee is 0.5%, higher than Bitwise's 0.34% but includes all fees such as custody, management, and index licensing. This fee structure is clearly designed for institutional investors.
● Unlike the lengthy review process for traditional financial products, the approval process for the XRPC ETF was exceptionally swift. This was mainly due to the regulatory cooperation between the SEC and the industry, as well as the support from key figures like SEC Chairman Paul Atkins and Commissioner Hester Peirce.
2. Product Analysis: The Core Mechanism of the XRPC ETF
● The XRPC ETF significantly differs from traditional cryptocurrency investment methods, representing a more advanced stage of cryptocurrency integration into mainstream financial markets. It does not provide risk exposure through derivatives or futures contracts but directly holds physical XRP tokens, jointly custodied by Gemini Trust Company and BitGo Trust Company.
● This spot holding model ensures a close tracking of the fund's assets with the XRP price, avoiding the common tracking error issues found in futures ETFs. Unlike Bitcoin's positioning as "digital gold" for value storage, XRP is primarily designed for cross-border payments and settlements.
● The XRP Ledger network can process transactions in 3-5 seconds, with extremely low fees, handling up to 1,500 transactions per second. This practicality and efficiency are precisely the qualities that institutional investors value most.
3. A Hot Start and Institutional Enthusiasm
The launch of the XRPC ETF received a warm market response. Data shows that the fund exceeded early trading volume estimates within the first 30 minutes of trading, becoming the hottest ETF debut of the year.
● Canary Capital CEO Steven McClurg expects the fund to attract up to $5 billion in inflows in its first month. If achieved, this would far exceed the previous record of $570 million for Solana's spot ETF on its first day of trading.
● AiCoin data indicates that XRP rose 4.1% to $2.51 after the ETF approval news, breaking through a key resistance level, with trading volume reaching 2.5 times the average. This market reaction is similar to the performance seen during the launches of Bitcoin and Ethereum ETFs.
● In terms of investor structure, Canary Capital anticipates that the XRP ETF will attract equal interest from institutional and retail investors. The company's previously launched Canary Hedera ETF attracted about $60 million in institutional funds within the first three days, accounting for over 85% of total inflows.
4. A New Landscape for Crypto ETFs
With the addition of the XRP ETF, the cryptocurrency ETF market has formed a clearer tiered structure. Here is a comparison of major cryptocurrency ETFs:
The launch of the XRP ETF makes XRP the sixth cryptocurrency to obtain a single-asset ETF, following Bitcoin, Ethereum, Solana, Litecoin, and Hedera. This event marks a shift in the crypto market from a "duopoly" of Bitcoin and Ethereum to a more diversified asset structure.
5. Industry Impact: Opening a New Era for Competitive Coin ETFs
● The approval of the XRP ETF has profound implications for the entire crypto industry, with its most direct effect being that it paves the way for ETF applications of other mainstream cryptocurrencies. Several analysts believe that cryptocurrencies with real use cases and strong institutional foundations are more likely to gain regulatory approval.
● This massive asset transfer from trading platforms to custodians reflects a strong market demand for regulated products. On the other hand, the decline in open contracts for XRP futures indicates that investors are shifting from speculative derivative trading to spot ETF investments. This transition also reflects the overall maturation of the cryptocurrency market.
6. Challenges and Risks: Concerns on the Path Forward
Despite the breakthrough progress of the XRP ETF, challenges and risks remain on the path ahead.
● Some market participants have explicitly urged the SEC to delay the approval of the XRP ETF, primarily citing unresolved legal and regulatory uncertainties surrounding Ripple Labs and its cryptocurrency. These legal complexities indeed pose potential risks.
● Although Judge Analisa Torres ruled in 2023 that XRP itself does not constitute a security when sold on public exchanges, and Ripple reached a settlement with the SEC in August 2025, the ambiguity regarding XRP's status still exists—especially concerning programmatic sales on exchanges, which continues to create a regulatory gray area.
● Another key point is that, unlike Bitcoin and Ethereum, XRP lacks a regulated futures market. Historically, the SEC has required such infrastructure to mitigate manipulation risks, and approving the XRP ETF without these safeguards may trigger further regulatory scrutiny or legal challenges.
7. A New Chapter for the Crypto Market
The successful launch of the XRP ETF opens a new door for the crypto market, marking that cryptocurrencies are further being integrated into the traditional financial system.
● From a market structure perspective, the crypto market is transitioning from the "duopoly" of Bitcoin and Ethereum to a more diversified stage, with more cryptocurrencies that have practical applications gaining mainstream attention.
● Analysts hold an optimistic view on the future price trajectory of XRP. Zach Rector predicts that XRP could reach the $10-20 range by 2027, citing that the ETF could drive a $500 billion increase in market capitalization. Other analysts, including Kenny Nguyen and McClurg, have set price targets of $22-26 based on expected institutional investment.
● From a broader perspective, the launch of the XRPC ETF represents an important signal of the maturation of cryptocurrencies as an asset class.
Investors now have a regulated and relatively cost-effective way to participate in the growth of XRP, a shift that could reshape the landscape of the cryptocurrency market in the coming years.
Financial institutions are beginning to reassess the classification standards for crypto assets, no longer simply distinguishing between "Bitcoin" and "other tokens," but evaluating each project based on actual use cases, regulatory clarity, and institutional infrastructure. The approval of the XRP ETF not only opens a product but also a new door for the entire crypto industry.
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