Canary Capital now files for a spot XRP ETF with the U.S. Securities and Exchange Commission to broaden investor access to the crypto.
Canary Capital has officially submitted an application for an XRP exchange-traded fund (ETF), following a similar filing by Bitwise just a week earlier.
This ETF aims to give investors exposure to XRP without requiring direct purchases.
Managed by Canary Capital Group, the fund will track XRP’s value using the CME CF Ripple index.
This structure facilitates investment in XRP for both institutional and retail investors through traditional financial markets, while also simplifying custody, security, and regulatory issues.
Canary’s filing comes on the heels of Bitwise’s own application for a spot XRP ETF, marking a significant step towards integrating XRP into conventional financial markets via ETF products.
The Trust will utilize a custodian to hold XRP in a combination of cold and hot wallets, implementing strict security measures for key generation and storage.
Share creations and redemptions will occur in large baskets through authorized participants, who will either deposit or receive cash equivalent to XRP.
Canary Capital expressed optimism about the evolving cryptocurrency market and its potential beyond Bitcoin and Ethereum.
A spokesperson mentioned, “We’re observing encouraging signs of a more progressive regulatory environment alongside increasing demand from investors for advanced access to cryptocurrencies beyond Bitcoin and Ethereum—especially for those seeking enterprise-grade blockchain solutions and their native tokens like XRP.”
Last week, the SEC appealed a court ruling in its case against Ripple Labs concerning XRP’s classification.
Following a federal judge’s decision in July 2023 that deemed only Ripple’s institutional XRP sales as unregistered securities offerings, the SEC contested the lighter $125 million penalty, which is significantly lower than the sought-after $2 billion.
This appeal has also hindered progress toward an XRP ETF, with ongoing regulatory uncertainties likely pushing approval back to 2025 or later.
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Also Read: The SEC Is Now Under Massive Scrutiny Following XRP Appeal
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