Crypto Investment Firm Canary Capital Files for Spot XRP ETF
Crypto investment firm Canary Capital has filed for a spot XRP ETF with the U.S. Securities and Exchange Commission (SEC), following Bitwise’s earlier application. The filing marks a significant push toward institutionalizing XRP-based financial products.
Key Details of the Filing
- Objective: Provide investors access to the XRP market via traditional brokerage accounts, bypassing complexities of direct crypto ownership.
- Price Tracking: The ETF will track XRP’s price using the CME CF Ripple Index, a benchmark for real-time XRP valuation.
- Custody Solutions: Utilizes secure hot/cold wallets to manage XRP holdings, ensuring regulatory compliance and reduced investor risk.
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Regulatory Hurdles and Market Uncertainty
Despite optimism from Canary Capital, regulatory challenges persist:
- The SEC’s ongoing appeal against the July 2023 ruling (which classified XRP as not a security on secondary markets) casts doubt on approval timelines.
- Bitwise’s similar filing on October 2 faces the same scrutiny, with analysts speculating delays until 2025 or later.
Canary Capital Statement:
“We see growing demand for crypto exposure beyond Bitcoin and Ethereum, particularly in blockchain utility tokens like XRP. A progressive regulatory environment is critical.”
Industry Reactions
- Steven McClurg (Canary Capital Founder) emphasized institutional demand for diversified crypto assets.
- Critics note the SEC’s stringent stance on altcoins, with Solana and Dogecoin ETFs also in limbo.
FAQs About the XRP ETF
1. What is a spot XRP ETF?
A fund tracking XRP’s live price, allowing traditional investors to gain exposure without holding the asset directly.
2. How does this differ from Bitcoin ETFs?
XRP’s legal status remains contested, unlike Bitcoin’s clearer regulatory acceptance.
3. When could the ETF launch?
Approval is unlikely before 2025, pending the SEC’s appeal outcome.
4. Why use the CME CF Ripple Index?
It provides a regulated, transparent pricing mechanism for institutional investors.
Market Implications
If approved, the XRP ETF could:
- Boost liquidity and legitimacy for XRP.
- Pave the way for other altcoin ETFs.
However, the SEC’s appeal in the Ripple case remains a major roadblock. Analysts urge caution, citing prolonged regulatory ambiguity.
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Keywords: XRP ETF, Canary Capital, Bitwise, SEC approval, CME CF Ripple Index, crypto regulation, spot ETF, altcoin investment.
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