Canary

Spot

Crypto investment firm Canary Capital has officially entered the race to launch a spot XRP exchange-traded fund (ETF). It becomes the second company in just seven days to seek approval from the U.S. Securities and Exchange Commission (SEC).
In its <a href="https://www.sec.gov/Archives/edgar/data/2039505/000199937124013130/canaryxrp-s1_100824.htm" rel="noopener noreferrer nofollow">filing</a> on October 8, Canary Capital outlined its goal of creating an XRP ETF, aiming to provide investors with a seamless way to gain exposure to XRP without directly holding the cryptocurrency.
The firm stated that its proposed ETF would track the price of XRP using the Chicago Mercantile Exchange (CME) CF Ripple index. This index a real-time benchmark designed to reflect the current market value of XRP. Importantly, Canary Capital stated that the fund would avoid using derivatives to monitor XRP’s price. They argue that this reduces additional counterparty and credit risks often associated with such financial instruments.
<h2 id="span-style-font-weight-400-xrp-etfs-face-regulatory-hurdles-span">XRP ETFs Face Regulatory Hurdles</h2>
Canary Capital’s filing closely follows a similar application from crypto asset manager <a href="https://thecoinrise.com/bitwise-officially-files-for-spot-xrp-etf-in-the-us/" rel="noopener noreferrer nofollow">Bitwise, which submitted its own bid for an XRP ETF</a> on October 2. If either company secures SEC approval, it would mark the first-ever spot XRP ETF, giving traditional investors an easier way to enter the XRP market through a brokerage account.
Despite the promising outlook, both applications face considerable regulatory challenges. The SEC is currently engaged in an ongoing lawsuit with Ripple, the issuer of XRP. The regulator alleges that XRP is an unregistered security and claims Ripple raised $1.3 billion through its sale.
This legal battle could serve as a significant roadblock for Canary Capital and Bitwise. This is because the SEC may be hesitant to approve any XRP-based products until the lawsuit is resolved.
<h2 id="span-style-font-weight-400-a-growing-demand-for-crypto-etfs-span">A Growing Demand for Crypto ETFs</h2>
At the time of writing, XRP is trading at $0.53, up slightly by 0.4% on the day. As more firms seek to create cryptocurrency-based ETFs, investors are also keeping an eye on the <a href="https://thecoinrise.com/solana-etf-and-xrp-etf-speculations-become-stronger-as-investors-eye-rco-finance-rcof-to-trade-them/" rel="noopener noreferrer nofollow">possibility of a spot Solana ETF</a>.
By offering investors a way to access crypto without the complexities of buying and storing the token, the ETF could appeal to those looking for a more traditional approach to digital assets.
The post <a href="https://thecoinrise.com/canary-capital-files-for-spot-ripple-etf-with-the-sec/" rel="noopener noreferrer nofollow">Canary Capital Files for Spot Ripple ETF with the SEC</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Canary Capital Files for Spot Ripple ETF with the SEC

Table of Contents

TheCoinrise Media

Other articles published on Oct 9, 2024

Crypto punters favor dollar-cost averaging when investing: Kraken survey

Ripple CTO Slams AI for What It Said About Victims Scammed on Bitcoin

Dragonz Lab Secures $9M Investment from Syndicate Capital to Enhance ‘Dragonz Land’ Ecosystem (9 ...

FED’s Senior Director Collins Makes Encouraging Remarks on Interest Rate Cut

Final Days To Grab The Best Deal! Analysts Predict $Mbag To Hit $1 Post-Launch!

Shiba Inu Price Rises Due to Increased Burning Rate

Join our free newsletter for daily crypto updates!