Canary Capital, a firm specializing in cryptocurrency investments, has submitted an application to establish a spot XRP exchange-traded fund (ETF), marking the second such attempt in just the past week. This development comes as regulatory interest in cryptocurrency products intensifies.
In its filing with the Securities and Exchange Commission (SEC) on October 8, Canary Capital proposed that its ETF would offer investors the ability to access the XRP market through traditional brokerage accounts. This structure aims to eliminate the hurdles and risks associated with directly purchasing and holding XRP . Rather than using derivative products, which can introduce additional counterparty and credit risks, the proposed ETF intends to track the price of XRP through the Chicago Mercantile Exchange’s CF Ripple index, a benchmark designed for real-time pricing.
Canary Capital did not specify the custodian for the new ETF, nor did it reveal the ticker symbol under which it would be listed. The investment firm expressed confidence that the design of its trust structure will allow investors to implement more effective strategic and tactical asset allocation strategies compared to direct investment in XRP .
Canary Capital’s application follows closely behind one submitted by crypto asset manager Bitwise, which filed for a similar XRP fund on October 2. If either application receives approval from the SEC, it would represent a significant milestone as the first spot XRP fund cleared by the agency. However, the path to approval may face considerable obstacles. The SEC is currently appealing its lawsuit against Ripple, the issuer of XRP , claiming that the token is an unregistered security and asserting that the company raised $1.3 billion through its XRP offerings.
XRP is presently trading at $0.5336, reflecting a modest increase of 0.24% for the day, though it remains unchanged over the past week, according to CoinMarketCap data. The market is watching closely as developments unfold.
