advertisement
Canary Capital has applied for permission to offer an exchange-traded fund (ETF) linked to the Ripple-related cryptocurrency XRP. This is the second registration in the US, and comes just a week after Bitwise filed for a similar product.
Canary Capital files first Form S-1 for XRP ETF with SEC
Cryptocurrency investment firm Canary Capital has taken a major step toward launching an exchange-traded fund tied to XRP.
The company filed an S-1 form with the Securities and Exchange Commission on Tuesday, a key requirement for companies seeking to issue new securities and list on public stock exchanges.
The fund, managed by Canary Capital Group, tracks the price of XRP through CME CF Ripple. If approved, the ETF would give investors “the opportunity to access the XRP market through traditional brokerage accounts without the potential barriers to entry and risks associated with directly acquiring and holding XRP,” the filing states. It’s dark.
According to CoinGecko data, XRP currently occupies 7th place on the cryptocurrency leaderboard. Bigger rivals Bitcoin (BTC) and Ether (ETH) have both been available to investors as ETFs since the beginning of this year, attracting billions of dollars in inflows.
advertisement
The Canary Capital XRP ETF bid comes after a federal judge in August ordered Ripple Labs to pay $125 million to the SEC for sales of XRP tokens to unregistered institutions. There are also things.
“Coupled with growing demand from investors seeking advanced access to cryptocurrencies beyond Bitcoin and Ethereum, especially those seeking access to enterprise-grade blockchain solutions and native tokens such as XRP. There are encouraging signs of a more progressive regulatory environment,” said Canary Capital. Founder Stephen McClurg claimed in a statement:
The company’s filing follows a similar move by Bitwise, which filed to debut its own spot XRP ETF about a week ago. Similar to Canary, Bitwise’s filing marks a significant push to bring XRP into traditional financial markets through regulated ETF products.
Uncertainty regarding XRP ETF
The SEC has not previously approved spot XRP ETFs, and they could face significant hurdles if approved. Ripple is locked in a years-long legal battle with the Securities and Exchange Commission after regulators accused the San Francisco company of raising $1.3 billion through the sale of XRP, which Ripple considers an unregistered security. I’m depressed.
The SEC recently challenged a court ruling in a case against Ripple regarding the classification of XRP. The move is hampering progress towards spot XRP products, with a lack of regulatory clarity potentially delaying a potential green light until 2025 or even beyond.
While crypto companies like Crypto.com are filing countersuits with the SEC, most of the crypto audience is wondering if other crypto ETFs will ever see the light of day under Gary Gensler’s leadership. I have doubts.
