Key Takeaways:
- Canary Capital has filed for a spot XRP ETF with the SEC, following a similar application by Bitwise earlier in the week.
- The ETF aims to track XRP’s price through the CME CF Ripple index, without using derivatives, offering traditional investors easier exposure to the token.
- SEC approval is uncertain amid regulatory challenges, including the agency’s appeal in the Ripple lawsuit concerning XRP’s classification as a security.
Canary Capital has filed for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), following a similar filing by Bitwise just a week earlier.
The proposed ETF aims to provide investors with access to XRP via traditional brokerage accounts without the need to directly manage or hold the cryptocurrency.
🚨NEW: Canary Capital has officially filed an S-1 with the @SECGov for an $XRP ETF.
— Eleanor Terrett (@EleanorTerrett) October 8, 2024
Canary is a new #crypto investment firm launched by @ValkyrieFunds founder @stevenmcclurg.
“We're seeing encouraging signs of a more progressive regulatory environment coupled with growing… pic.twitter.com/GbLWQy5p7q
It will track XRP’s price using the CME CF Ripple index and will not rely on derivative products, thereby reducing potential risks.
Canary Capital believes this structure will simplify asset allocation for investors.
While details such as the ETF’s custodian and ticker symbol were not revealed, this move represents a significant development in the crypto market.
However, SEC approval is uncertain due to ongoing regulatory challenges, including the SEC’s appeal in a lawsuit against Ripple, which claims XRP is an unregistered security.
If approved, this would mark the first-ever spot XRP ETF.
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