Another manager sends request for XRP spot ETF
Cryptocurrency investment firm Canary Capital has filed with the United States Securities and Exchange Commission (SEC) to launch a spot XRP exchange-traded fund (ETF). This is the second order for this type of product recorded this month alone, signaling the growing interest in XRP-based investment options.
According to the S-1 registration document filed by Canary Capital on Tuesday, the XRP ETF would provide investors with a way to access the XRP market through a traditional brokerage account. This way, there would be no barriers and risks associated with directly purchasing and owning cryptocurrency. However, the company has not yet appointed a custodian or administrator for the fund.
Steven McClurg, founder of Canary Capital, highlighted in a statement the growing demand from investors for access to cryptocurrencies that go beyond Bitcoin and Ethereum.
“We are seeing encouraging signs of a more progressive regulatory environment coupled with growing investor demand for sophisticated access to cryptocurrencies, especially those focused on enterprise blockchain solutions like XRP,” said McClurg, who also previously founded Valkyrie Funds, responsible for other cryptoasset ETFs.
XRP ETF Coming?
Canary Capital's move comes shortly after Bitwise filed its own registration application for a spot XRP ETF last week, as reported by CriptoFácil.
To date, the SEC has not approved any spot market-based XRP ETFs. And if it does, the process could face significant challenges. That's because the agency has been locked in a long legal battle with Ripple, accusing the company of raising $1.3 billion through the sale of XRP, which the SEC considers to be an unregistered securities offering.
The development of this type of product in the American market is closely monitored by investors and industry participants, especially considering the regulatory and legal context surrounding XRP.
The price of XRP did not show any major reactions to the news of yet another request to launch an ETF. According to data from CoinGecko, in the last 24 hours, the price of Ripple's crypto asset rose just 0.2%. At the time of writing this article, the token costs US$0.53.