Canary Capital’s Latest Move In The US Market

Crypto investment company Canary Capital has submitted an application for a second XRP exchange-traded fund (ETF) in the United States. This filing is consistent with Bitwise’s recent submission of a comparable application for a spot XRP ETF.

In light of the legal and regulatory uncertainty surrounding XRP, Canary’s decision to proceed with this ETF demonstrates a bold approach to the asset’s long-term potential.

Canary Capital submitted the S-1 filing Tuesday, which is a requirement for issuers to file to publicly offer new securities.

The Canary ETF is particularly ambitious as the legal and regulatory fate of XRP remains shrouded in doubt, indicating a firm conviction in the digital asset’s future role in the finance industry.

Source: SEC

Canary Hops In: The 2nd ETF

The new Canary ETF comes just as the future of XRP in the US remains uncertain, owing to ongoing legal proceedings between Ripple Labs and the SEC. The case is the subject of a heated discussion on whether XRP should be classified as a security token.

Breaking: Canary Capital Files Second XRP ETF In the UShttps://t.co/6KVIDzKkOe

— John Morgan (@johnmorganFL) October 8, 2024

The legal outcome is seen as having a significant implication on Ripple and the greater crypto market as a measure of how other digital asset issuers will be treated. However, the filing by Canary is not made out of desperation. It is more than a wishful attempt to preserve the so-called fading purple dream.

Else, the increased possibility to secure the SEC’s backing represents a sign of a changed regulatory attitude towards crypto projects across the board.

XRP market cap currently at $30 billion. Chart: TradingView.com

XRP Growing Adoption

The ETF filing also underscores a broader trend of institutional interest in XRP. While enthusiasm for XRP is unabated within the crypto community, many institutional investors are looking for a reliable, regulated way to gain an exposure without needing to purchase, store, and secure it.

Canary Capital’s XRP ETF seeks to follow the CME CF Ripple index, therefore providing investors with a consistent price reference. This lets one avoid the complications of buying, storing, and safeguarding the asset while indirectly exposing oneself to the XRP market.

XRP up in the last 24 hours. Source: CoinMarketCap

Clear Avenue For XRP Market

Canary Capital’s move is a bold one. Regardless of uncharted regulatory territory, XRP’s role in institutionalized finance is far from unknown. If the ETF is approved, it would give large investors a clear pathway to entry into the XRP market. It may also signal XRP’s entry into a new stage of maturity, based primarily on Ripple’s settlement and SEC’s attitude toward cryptos.

A the time of writing, XRP was trading at $0.53, up 0.5% on the 24-hour timeframe, and trading flat in the last week, data from CoinMarketCap shows.

Featured image from The Tech Report, chart from TradingView