Crypto investment firm Canary Capital has filed for a second one XRP Exchange Traded Fund (ETF) in the United States. This filing aligns with Bitwise’s recent filing of a similar application for a spot XRP ETF.
In light of the legal and regulatory uncertainty surrounding XRP, Canary’s decision to move forward with this ETF demonstrates a bold approach to the asset’s long-term potential.
Canary Capital filed its S-1 filing on Tuesday, which is a requirement for issuers to file to publicly offer new securities.
The Canary ETF is particularly ambitious as the legal and regulatory fate of XRP is still shrouded in doubt, indicating a strong belief in the digital asset’s future role in the financial sector.
Source: SEC
Canary hop-in: the 2nd ETF
The new Canary ETF comes at a time when 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 over whether XRP should be classified as a security token.
Breaking: Canary Capital Files Second XRP ETF in the UShttps://t.co/6KVIDzKkOe
— John Morgan (@johnmorganFL) October 8, 2024
The legal outcome is believed to have significant implications for Ripple and the larger crypto market as a benchmark for how other digital asset issuers will be treated. However, Canary’s filing is not out of desperation. It is more than a wishful attempt to maintain the so-called fading purple dream.
Otherwise, the increased ability to secure the SEC’s support represents a sign of a changing regulatory attitude toward crypto projects across the board.
XRP market cap currently at $30 billion. Chart: TradingView.com
XRP growing adoption
The ETF filing also underlines a broader trend institutional interest in XRP. While enthusiasm for XRP remains high within the crypto community, many institutional investors are looking for a reliable, regulated way to gain exposure without having to buy, store and secure it.
Canary Capital’s XRP ETF aims to track the CME CF Ripple index, thereby providing investors with a consistent price reference. This allows you to avoid the complications associated with purchasing, storing and securing assets, while indirectly exposing yourself to the XRP market.
XRP up in the last 24 hours. Source: CoinMarketCap
Clear path for XRP market
Canary Capital’s step is bold. Regardless of the uncharted regulatory territory, XRP’s role in institutionalized finance is far from unknown. If the ETF is approved, it would provide large investors with a clear path to entry into the XRP market. It could also be a signal that XRP is entering a new phase of maturity, based mainly on Ripple’s settlement and SEC’s stance towards cryptos.
At the time of writing, XRP was trading at $0.53up 0.5% over the 24-hour time frame and steady trading over the past week, CoinMarketCap data shows.
Featured image from The Tech Report, chart from TradingView