Mark Weaden
Canary Capital Group has officially filed for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), intensifying the competition in the crypto ETF space. This move comes just a week after asset manager Bitwise submitted its own XRP ETF proposal.
The proposed Canary Spot XRP ETF, the firm's first ETF offering, aims to provide investors with exposure to XRP's value through traditional brokerage accounts. Steven McClurg, Canary's founder and former Valkyrie Funds co-founder, views this filing as a response to "a more progressive regulatory environment coupled with growing demand from investors."
According to the filing, the ETF will track XRP using the Chicago Mercantile Exchange (CME) CF Ripple index, potentially lowering barriers for investors seeking XRP exposure.
This flurry of XRP ETF filings follows the SEC's recent approvals of spot ETFs for Bitcoin and Ethereum. Since January, spot Bitcoin ETFs have attracted nearly $19 billion, while Ether ETFs have seen $550 million in outflows.
The increased interest in XRP ETFs comes in the wake of Ripple's partial victory in its legal battle with the SEC, where a judge ruled that XRP "is not a security" by itself. This decision has bolstered confidence in XRP's market position, despite ongoing legal proceedings.
As the crypto investment landscape continues to evolve, firms like Grayscale are also exploring XRP Trust investment products with potential ETF conversions, signaling a growing institutional interest in providing regulated XRP exposure to investors.
