Canary Capital's XRP and SOL ETF Amendments: A Step Closer to SEC Approval Amid October 2025 Shutdown Chaos

In the turbulent crypto landscape of October 2025, marked by a $19 billion liquidation storm from U.S.-China tariff escalations, Canary Capital Management is edging nearer to SEC green lights for its spot ETFs tracking XRP and Solana (SOL). On October 10, the firm filed key amendments to its registration statements for the Canary XRP ETF and the Canary Marinade SOL ETF, disclosing a competitive 0.50% expense ratio for both—slashing prior 0.95% fees on similar products like HBAR and Litecoin ETFs. This move, amid a looming U.S. government shutdown extension, signals accelerating momentum for altcoin ETFs, potentially unlocking billions in institutional inflows as blockchain trends shift toward mainstream tokenized assets.

The Filings: Amendments and Staking Details

The Canary XRP ETF amendment (S-1A filing) outlines a straightforward spot product tracking Ripple's XRP, with direct holdings and custody via qualified providers, emphasizing regulatory compliance post-SEC vs. Ripple resolutions. Meanwhile, the Canary Marinade SOL ETF—now at Amendment #6—incorporates staking for yield generation but notably excludes sponsor cuts from rewards, a user-friendly twist that could attract DeFi natives. Both ETFs leverage Coinbase Custody for security, aligning with 2025's emphasis on compliant infrastructure amid volatility. These updates follow a wave of similar filings, including DOGE and LTC proposals, as firms race to capitalize on a crypto-friendly SEC under incoming chair Paul Atkins.

• XRP ETF Highlights: Spot exposure to XRP; 0.50% fee; focuses on cross-border utility.
• SOL ETF Specifics: Staking integration without fee skims; Amendment #6 marks advanced stage.
• Cost Edge: 0.50% vs. competitors like Bitwise's 0.20% SOL staking ETF.
• Custody Setup: Institutional-grade via Coinbase, reducing hack risks.

SEC Context and Shutdown Hurdles

The SEC's recent listing standards for crypto ETFs bypass lengthy 19b-4 reviews, fast-tracking approvals via streamlined registration—potentially enabling dozens of products to launch without delays. However, the ongoing government shutdown (now Day 10) lapsed deadlines for SOL and LTC 19b-4s, stalling progress until reopening. Bloomberg ETF analyst Eric Balchunas noted on X: "Canary just filed Amendment #6... for their spot Solana ETF w/ a 0.50% expense ratio but NO CUT of the Solana staking rewards." Sources hint at batched approvals in late October or November, prioritizing S-1 statements over timed filings, as the agency adapts to a pro-crypto administration.

• Standards Boost: New rules cut timelines; focus on S-1s without 19b-4 bottlenecks.
• Shutdown Impact: Paused ETF launches; unclear resumption timeline.
• Batching Outlook: October-November window for single-asset crypto ETFs.
• Expert Take: Balchunas highlights Canary's staking transparency as a differentiator.

Broader Implications for Altcoin ETFs in 2025

These amendments underscore a maturing ETF pipeline, with XRP and SOL poised to follow Bitcoin and Ethereum's spot successes, potentially injecting $5-10 billion in liquidity. Amid tariff-induced market dips, approval could catalyze rebounds, tying into DeFi trends like RWA tokenization on Solana. For investors, it's a hedge against volatility: Diversify via compliant platforms, monitor SEC dockets, and eye staking yields for passive alpha.

In summary, Canary's October 10 amendments propel XRP and SOL ETFs toward SEC nods, navigating shutdown snags with fee cuts and staking perks— a bullish signal for altcoin mainstreaming. Track filings on EDGAR, secure via multi-sig wallets, and prepare for Q4 launches; in crypto's regulatory thaw, these could redefine portfolios.