Following Bitwise, Canary Capital Files for Spot XRP ETF

Bittime - Canary Capital followed Bitwise's steps by submitting a proposal to launch an XRP ETF Spot. What is the reason? Follow the full review to find out.

Canary Capital has just made an important step by submitting a proposal to launch an XRP-based Exchange-Traded Fund (ETF) in the United States. This is the second application for an XRP ETF in Uncle Sam's country, after previously Bitwise became the first company to try to present a similar product. 

This step was taken even though the regulatory status of XRP is still not completely clear, especially due to the ongoing legal process between the United States Securities and Exchange Commission (SEC) and Ripple Labs.

Canary Capital and Ventures Present XRP ETF

Canary Capital, a crypto investment firm, has submitted a proposal to launch an XRP-based ETF under the name Canary XRP ETF. The filing is made via a Form S-1 registration statement with the SEC. 

Behind this proposal, there is great optimism from Canary Capital, founded by Steven McClurg of Valkyrie Funds. They see positive signs in the current regulatory environment, as well as increasing investor demand for more sophisticated access to crypto assets beyond Bitcoin and Ethereum.

Read also: XRP Price Prediction 2025, Can It Rise to $1.25?

The timing of this filing is quite significant, considering that it has not been long since the SEC approved a Bitcoin-based ETF. This sparked hopes among crypto industry players that similar products for other crypto assets may soon get the green light. However, XRP's regulatory status remains complicated. 

The SEC is currently appealing a July 2023 court ruling that stated that XRP is not a security when traded on the secondary market. This appeals process creates uncertainty regarding the legal status of XRP and could influence the SEC's decision regarding XRP-based ETF applications.

Regulatory Challenges for Crypto ETFs

Canary Capital's filing of an XRP ETF reflects the growing interest in ETF products in the crypto world. After the success of Bitcoin ETFs, many investment companies are eager to expand their offerings to include other popular crypto assets. 

However, the SEC's stance on altcoins or crypto assets other than Bitcoin and Ethereum is still not completely clear. This could be an obstacle to the approval of other digital asset-based ETF products.

Under Gary Gensler's leadership, the SEC took a cautious approach to cryptocurrency regulation. The commission continues to take enforcement actions against various crypto companies and projects, citing investor protection and market integrity. 

This kind of regulatory environment produces mixed reactions in the crypto industry; While some see the approval of a Bitcoin ETF as a positive sign, many still doubt the prospects of similar products for other crypto assets, including XRP.

Read also: XRP ETF Narrative: Between Hopes and Challenges, Will It Come True?

What Does This Filing Mean For The Future Of XRP?

The ETF proposed by Canary Capital aims to track the price of XRP. This allows investors to gain exposure to these crypto assets without having to own them directly. 

With increasing interest in more structured crypto investment products such as ETFs, this move could be a new entry point for more conservative investors to get involved in the world of digital assets. However, much depends on the outcome of the appeal filed by the SEC in the Ripple case.

If the court ultimately rules in favor of Ripple, this could pave the way for the approval of other XRP-based financial products, including ETFs. On the other hand, if the ruling goes in favor of the SEC, then it is certain that there will be additional obstacles that must be overcome by companies wishing to launch XRP-based products in the future.

Conclusion

Canary Capital's XRP ETF filing adds new color to the crypto investment landscape in the United States. This step shows that optimism is still high among industry players, even though regulatory challenges continue to loom. 

On the one hand, the approval of a Bitcoin ETF gives hope that similar products for other cryptos may just be a matter of time. But on the other hand, the legal uncertainty surrounding XRP, especially related to the ongoing case between the SEC and Ripple, remains a factor to consider.

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