Canary Capital, a crypto investment firm, filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF). This marks the firm’s first attempt at launching an ETF. The filing comes just days after Bitwise Asset Management also submitted its registration for an XRP exchange-traded product (ETP) on October 2. Bitwise filing requires additional approval, but both companies are racing to launch an XRP ETF.
The latest action by Canary Capital is remarkable because it shows increased attention to investing in XRP. The firm, founded in September by Steven McClurg, the former co-founder of Valkyrie Funds, said the filing was in response to rising demand from investors and potential regulatory changes that may be more favorable to the firm. Significantly, this filing was done when Bitcoin and Ether ETFs were launched this year and attracted many investors.
SEC Delays XRP ETF Approval, Weighing Ripple Lawsuit
Cryptocurrency ETFs have expanded significantly, and at the moment, they hold approximately $19 billion. On the other hand, Ether ETFs have recorded mixed performance, with something like $550 million being redeemed. However, the current crypto ETFs have opened the path for more firms, such as Canary Capital and Bitwise, to enter the market. Two other firms also looking to list Solana-linked ETFs are VanEck Asset Management and 21Shares AG.
However, gaining approval for a spot in XRP ETF is challenging. The SEC has not approved this type of product to date. On the other hand, the agency is still in a lawsuit against Ripple Labs, the company associated with XRP. The SEC has claimed that Ripple sold XRP for $1.3 billion, which the agency considers unregistered security. This case has created some uncertainty about the future of XRP-related financial products.
Ultimately, efforts to bring an XRP ETF to the market are rising steadily. Canary Capital and Bitwise both believe that their filings will eventually be approved by the SEC, but it is still unknown when that will occur. People interested in investing and analysts are eager to know what the next step of the SEC will be because the approval of a spot XRP ETF will meaningfully influence the crypto market.
