Canary Capital files for XRP ETF with SEC filing

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Canary Capital has officially submitted for an XRP ETF, following Bitwise’s similar move a week earlier. The ETF will give investors exposure to XRP without the need for direct purchases.

Managed by Canary Capital Group, the fund will track the value of XRP using CME CF Ripple. This structure allows institutional and retail investors to invest in XRP through traditional financial markets while reducing the complexities of custody, security and regulation.

This filing follows a similar move by Bitwise, which DEPOSIT for your own spot XRP ETF just a week before. Bitwise’s filing, like Canary’s, marks a significant push in bringing XRP to traditional financial markets via ETF products.

The trust will rely on its custodian to hold XRP in a mix of cold and hot wallets with strict security protocols for key generation and storage. Creation and redemption of shares will only take place in large baskets through authorized participants who will deposit or receive cash representing XRP.

Canary Capital emphasized its confidence in the evolving crypto market and its potential beyond Bitcoin and Ethereum.

“We are seeing encouraging signs of a more progressive regulatory environment, along with increasing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum – particularly investors seeking access to enterprise-grade blockchain solutions and their native tokens , such as XRP,” Canary stated. the spokesperson noted.

Last week, the SEC appealed a court ruling in its case against Ripple Labs regarding the classification of XRP. After a federal judge’s July 2023 ruling that only Ripple’s institutional XRP sales were unregistered securities offerings, the SEC challenged the lighter $125 million penalty, significantly less than the $2 billion sought.

The move also stalled progress toward an XRP ETF, with continued regulatory uncertainty likely delaying approval until 2025 or later.

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