Canary Capital Files for Spot XRP ETF, Days After Bitwise Bid With SEC

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Sujha Sundararajan

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Sujha Sundararajan

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Canary Capital XRP ETF

Crypto investment firm Canary Capital Group has officially filed its proposed XRP exchange-traded fund (ETF) with the US regulator. The submission comes a week after asset manager Bitwise first filed for an ETF tracking the token.

Per a Bloomberg report, the Canary Spot XRP ETF will be the firm’s first ETF, offering exposure to the token. The Group submitted the paperwork with the US Securities and Exchange Commission (SEC) on Tuesday.

Steven McClurg, former Valkyrie Funds co-founder and the founder of Canary, calls the filing a “more progressive regulatory environment coupled with growing demand from investors.”

“The Trust’s investment objective is to seek to provide exposure to the value of XRP held by the Trust, less the expenses of the Trust’s operations and other liabilities,” the filing read.

Further, the fund would give investors access to the Ripple-issued token “through a traditional brokerage account without the potential barriers.”

Canary noted that its XRP ETF will track the token using the Chicago Mercantile Exchange (CME) CF Ripple index.

The recent XRP ETF filings come as the securities regulator approved spot ETFs for two of the largest cryptocurrencies by market cap – Bitcoin and Ethereum – this year. Spot Bitcoin ETF products have attracted almost $19 billion since January and Ether ETFs lured $550 million of outflows.

On October 2, Bitwise filed for an XRP ETF to Delaware’s Division of Corporations. Besides, Grayscale recently revealed plans to launch an XRP Trust investment product and eventually convert it into an ETF.

Ripple Vs SEC Settlement Clears Ambiguities on XRP

The Ripple Labs vs. SEC lawsuit ended with the ruling in July 2023 that XRP “is not a security” by itself. This was big news for the XRP market, driving up the token prices.

In August, a federal judge ordered Ripple Labs to pay $125 million in civil penalties, ending a nearly four-year battle. The judge also ordered the creator of XRP to refrain from further violations of securities law.

Besides, industry analysts claimed that the token’s fundamentals remain solid despite the SEC’s appeal in the lawsuit. One strategist noted that nothing has changed for Ripple and XRP.

“The price is not dependent on this lawsuit, as we analysed before.”

Another popular analyst, Oscar Ramos, is bullish on the XRP token despite the SEC’s appeal. He believes that the token doesn’t have a security status, which is why he bought more of the asset.

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