A quiet filing by Canary Funds could soon mark one of the most unconventional ETF debuts in U.S. crypto history.
Rather than waiting for the Securities and Exchange Commission to approve its proposal, the issuer has triggered a mechanism that allows the product to go live automatically — unless regulators step in to stop it.
An Unorthodox Strategy
The move stems from an obscure provision in the Securities Act of 1933, known as Section 8(a). By removing what’s called a “delaying amendment,” Canary effectively lets its XRP spot exchange-traded fund (ETF) take effect on a fixed timeline — 20 days after filing — instead of at the SEC’s discretion.
In practice, that means the XRP ETF could become legally active as soon as November 13, provided Nasdaq completes its listing procedures and the SEC doesn’t intervene.
This filing tweak might seem minor, but market analysts describe it as one of the boldest regulatory plays in the evolving crypto ETF race. It’s a way of saying, “We’re ready — the burden’s on you to stop us.”
Timing the Shutdown
The decision also comes during a partial U.S. government shutdown, when many SEC review processes have slowed or paused entirely. By exploiting that window, Canary is using time as a tactical advantage, counting on bureaucratic delays to work in its favor.
According to FOX Business journalist Eleanor Terrett, the fund’s timeline could make it the first XRP ETF to trade on a major U.S. exchange. She described the maneuver as a “calculated test” of the SEC’s willingness to intervene while much of its operations remain limited.
?SCOOP: @CanaryFunds has filed an updated S-1 for its $XRP spot ETF, removing the “delaying amendment” that stops a registration from going auto-effective and gives the @SECGov control over timing.
This sets Canary’s $XRP ETF up for a launch date of November 13, assuming the… pic.twitter.com/MKvEN23t5P
— Eleanor Terrett (@EleanorTerrett) October 30, 2025
Other issuers, including Solana and Hedera ETF sponsors, have filed similar “auto-effective” applications in recent weeks — suggesting that this new route may become a trend rather than an exception.
Inside the ETF
While the regulatory playbook is daring, the product itself is relatively straightforward. The trust will hold XRP tokens, with shares representing fractional ownership minus management costs. Pricing will be based on the CoinDesk XRP CCIXber Reference Rate, an index averaging prices from multiple exchanges to minimize volatility and manipulation.
Gemini Trust Company and BitGo Trust Company have been appointed as joint custodians — a pairing meant to reassure institutional investors that asset security meets the same standard as existing Bitcoin and Ethereum funds.
XRP’s Expanding Institutional Network
Momentum around XRP-focused products has been building throughout 2025. In October, Evernorth Holdings, a Ripple-backed treasury firm, listed on Nasdaq after completing a $1 billion XRP accumulation, signaling growing interest from traditional finance.
Meanwhile, T. Rowe Price recently sought approval for a diversified digital asset ETF that includes Bitcoin, Ethereum, Solana, and XRP, reinforcing the token’s growing relevance in institutional portfolios.
Together, these developments mark XRP’s most significant step toward mainstream integration since Ripple’s legal clarity milestone last year.
The Bigger Picture
Canary’s move illustrates how the ETF race has shifted from persuasion to procedure. Rather than waiting months for regulatory green lights, firms are using legal precision to force the process forward — daring the SEC to say no instead of asking it to say yes.
If the SEC chooses not to respond, the Canary XRP ETF could become the first major crypto product to slip through Washington’s regulatory gridlock — not by breaking the rules, but by mastering them.
