Bitrabo Editorial
Canary Capital, a crypto investment firm, has filed for a second XRP exchange-traded fund (ETF) in the US. This move aligns with Bitwise’s recent similar application for a spot XRP ETF.
Despite the ongoing legal complications surrounding XRP, Canary’s decision to pursue this ETF reflects a strong belief in the long-term prospects of the asset.
This past Tuesday, Canary Capital filed its S-1 application, a prerequisite for publicly offering new securities.
The newly proposed Canary ETF is notably ambitious given the continued uncertainty regarding XRP’s legal standing, illustrating a solid commitment to XRP’s potential significance in finance.
Canary Steps Up: The New ETF
The introduction of the Canary ETF comes amid ongoing uncertainty surrounding XRP in the United States, primarily due to the legal battle between Ripple Labs and the SEC, which revolves around whether XRP qualifies as a security token.
Breaking: Canary Capital Files Second XRP ETF In the US
— John Morgan (@johnmorganFL) October 8, 2024
The results of this legal case are anticipated to have significant implications for Ripple and the broader cryptocurrency market, influencing how other digital asset creators are regulated. However, Canary’s application is not a last-ditch effort; it suggests a strategic belief in XRP’s viability.
The potential for securing SEC approval indicates a shift in regulatory perspectives towards cryptocurrency initiatives.
Increasing Interest in XRP
This ETF application highlights a growing trend of institutional interest in XRP. The enthusiasm for XRP persists within the crypto community, while many institutional investors are seeking a secure, regulated means to invest in the asset without the complexities of ownership.
The Canary Capital XRP ETF aims to track the CME CF Ripple index, ensuring a reliable price reference for investors. This approach allows investors to engage with the XRP market without direct ownership concerns.
Clear Pathway for XRP Markets
Canary Capital’s initiative is a daring one. Despite the ambiguous regulatory landscape, XRP’s established role in financial systems remains evident. Should the ETF receive approval, it would facilitate easier access for institutional investors entering the XRP market, possibly paving the way for XRP’s evolution in the financial sector, depending on Ripple’s legal outcomes and regulatory responses to cryptocurrencies.
At the time of this report, XRP was trading at $0.53, reflecting a 0.5% increase over the past 24 hours, with stable movement over the last week, as per data from CoinMarketCap.
Featured image from The Tech Report, chart from TradingView