Canary Capital’s XRP ETF Bid—How They Plan to Win SEC Approval
- Canary Capital has stirred the crypto waters with a bold XRP ETF proposal.
- The SEC’s ongoing clash with Ripple has cast uncertainty over these moves.
- Missing details have left investors buzzing with speculation.
Canary Capital is making waves in the crypto world with its bold move to launch a spot XRP exchange-traded fund (ETF), marking the second attempt within a week to bring such a product to market. If approved, this ETF could revolutionize investors’ exposure to XRP by eliminating the need to buy and hold the cryptocurrency directly.
In its October 8 filing with the U.S. Securities and Exchange Commission (SEC) , Canary Capital outlined plans to offer investors a more accessible route into the XRP market. The proposed ETF would allow investors to engage with XRP “through a traditional brokerage account,” bypassing the complexities and risks of managing the asset themselves.
Canary Capital’s XRP ETF Filing
The fund aims to track XRP’s price via the Chicago Mercantile Exchange (CME) CF Ripple index, a real-time benchmark that ensures price accuracy. By steering clear of derivatives, Canary Capital hopes to avoid the additional risks tied to counterparties and credit often accompanying such financial products.
Sponsored
According to the filing, Canary Capital believes its ETF design will streamline asset allocation strategies for those seeking to tap into XRP, offering a more efficient alternative to purchasing, holding, and trading the cryptocurrency directly.
Despite the ambitious filing, the firm has yet to disclose key details, including who will act as custodian for the ETF or what ticker symbol it will trade under. This filing follows a similar bid by Bitwise, another crypto asset manager, which submitted its own application for an XRP ETF just days earlier.
Ripple CEO’s Reaction to XRP ETF Filings
Brad Garlinghouse , CEO of Ripple Labs, acknowledged the growing momentum in the space by replying to tweets reporting on the filings with a playful GIF, signaling his enthusiasm for the developments. However, the road to approval could be bumpy. The SEC is still embroiled in its legal battle with Ripple, the issuer of XRP, claiming the token is an unregistered security.
This ongoing lawsuit, in which the regulator alleges Ripple raised $1.3 billion through XRP sales, may pose significant hurdles. As of now, XRP is priced at $0.53, reflecting a modest 0.4% uptick on the day. Performance has remained flat over the past week.
On the Flipside
- Ripple’s ongoing legal battle with the SEC could delay or block ETF approval, casting uncertainty on the product’s future.
- Canary Capital hasn’t revealed a custodian for the ETF, raising concerns about asset safety.
- The unresolved lawsuit accusing Ripple of selling unregistered securities poses significant risks, even if the ETF is approved.
Why This Matters
Canary Capital’s spot XRP ETF could reshape the crypto landscape by providing a traditional, secure way for investors to engage with XRP without directly holding it. This move pushes regulators to address legal uncertainties around XRP and may drive broader crypto adoption.
To learn more about the potential impact of the SEC’s appeal on the approval of Bitwise’s XRP ETF, read here:
Will SEC’s Ripple Appeal Stop Bitwise’s XRP ETF in Its Tracks?
Curious to know if Bitwise’s XRP ETF will be approved despite the SEC’s scrutiny? Read more here:
Bitwise Shoots for XRP ETF—Will It Survive the SEC’s Scrutiny?
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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