Crypto investment firm Canary Capital has filed for a second XRP exchange-traded fund (ETF) in the United States. This filing coincides with Bitwise’s recent filing of a similar request for the spot XRP ETF.
Given the legal and regulatory uncertainty surrounding XRP, Canary’s decision to continue with this ETF reflects a bold approach to the long-term potential of the asset.
Canary Capital filed an S-1 filing on Tuesday, which is the filing requirement for issuers to publicly offer new securities.
The Canary ETF is particularly ambitious as the legal and regulatory fate of XRP remains in doubt, reflecting strong confidence in the future role of the digital asset in the financial industry.
Source: SEC
Canary Hops In: The 2nd ETF
The new Canary ETF comes just as the future of XRP in the US remains uncertain, due to ongoing legal proceedings between Ripple Labs and the SEC. The case is the subject of a heated debate as to whether XRP should be classified as a security token.
Breach: Canary Capital Files Second XRP ETF In US
— John Morgan (@johnmorganFL) October 8, 2024
The legal outcome appears to have a major impact on Ripple and the broader crypto market as a measure of how other digital asset issuers will be treated. However, the installation of the Canary was not done out of desperation. It is more than a desperate attempt to preserve the so-called fading purple dream.
Also, the growing possibility of securing SEC support represents a sign of a changed regulatory attitude toward crypto projects across the board.
XRP market cap currently at $30 billion. Chart: TradingView.com
Growing Discovery of XRP
The ETF’s inclusion also underscores the broader trend of institutional interest in XRP. While the excitement of XRP is unabated among the crypto community, many institutional investors are looking for a reliable, regulated way to gain exposure without needing to buy, store, and protect it.
Canary Capital’s XRP ETF seeks to track the CME CF Ripple index, therefore providing investors with a constant price index. This allows one to avoid the hassles of buying, storing, and securing assets while indirectly exposing oneself to the XRP market.
XRP up in the last 24 hours. Source: CoinMarketCapClear the Road to the XRP Market
Canary Capital’s move is bold. Regardless of the unspecified jurisdiction, XRP’s role in institutional finance is far from unknown. If the ETF is approved, it will give large investors a clear way to enter the XRP market. It may also indicate XRP’s entry into a new stage of maturity, based primarily on Ripple’s settlement and the SEC’s attitude toward cryptos.
At the time of writing, XRP was trading at $0.53, up 0.5% in the 24-hour period, and trading flat over the past week, data from CoinMarketCap shows.
Featured image from Tech Report, chart from TradingView