Cryptocurrency investment firm Canary Capital has filed for a second time XRP exchange-traded fund (ETF) In the United States. This filing is consistent with Bitwise’s recent filing for 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 an S-1 on Tuesday, a requirement issuers must meet to publicly offer new securities.
Traded canaries Especially ambitious because the legal and regulatory fate of XRP is still shrouded in uncertainty, indicating a firm conviction in the future role of digital assets in the finance industry.
Source: SEC
Canary jumps in: ETF II
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 Securities and Exchange Commission. This issue is the subject of a heated debate about whether XRP should be classified as a security token.
BREAKING: Canary Capital announces second XRP ETF in the UShttps://t.co/6KVIDzKkOe
– John Morgan (@johnmorganFL) October 8, 2024
The legal outcome is seen as having a major impact on Ripple and the larger cryptocurrency market as a barometer for how other digital asset issuers will be treated. However, the application by Canary was not done out of desperation. It is more than just a wishful attempt to preserve the so-called fading purple dream.
Otherwise, the increasing likelihood of securing SEC backing is a sign of a changing regulatory stance toward cryptocurrency projects across the board.
XRP market cap currently at $30 billion. Chart: TradingView.com
Increased adoption of XRP
The ETF filing also underscores the broader trend of Institutional interest in XRP. While the enthusiasm for XRP is non-stop within the cryptocurrency community, many institutional investors are looking for a reliable and regulated way to gain exposure without having to buy, store, and secure it.
Canary Capital’s XRP ETF seeks to follow the CME CF Ripple Index, thus providing investors with a consistent price reference. This allows one to avoid the complexities of purchasing, storing and protecting assets while indirectly exposing oneself to the XRP market.
XRP up in the last 24 hours. Source: CoinMarketCap
XRP up in the last 24 hours. Source: CoinMarketCapClear Avenue for XRP market
Canary Capital’s move is a bold one. Aside from the uncharted regulatory territory, XRP’s role in institutional finance is not well known. If the ETF is approved, it will give large investors a clear path into the XRP market. It may also signal XRP entering a new phase of maturity, based mainly on the Ripple settlement and the SEC’s stance toward cryptocurrencies.
At the time of writing, XRP Trading at $0.53It rose 0.5% on the 24-hour time frame and traded flat last week, according to CoinMarketCap data.
Featured image from technical report, chart from TradingView
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