Ripple (XRP) ETF Underway? Canary Capital Files an Application with the US SEC
The second application for an exchange-traded fund based on the Ripple coin has been submitted in the United States. Canary Capital, an ETF issuer, filed with the US Securities and Exchange Commission on October 8 for an exchange-traded product for Ripple’s XRP.
It is the second XRP-based fund filing in a fortnight, following Bitwise’s application for the Bitwise XRP ETF trust on September 30th. According to the company, the tool will follow the price of XRP using the Chicago Mercantile Exchange’s (CME) CF Ripple Index. Bloomberg ETF analyst Eric Balchunas stated that he was unfamiliar with the issuer, who “looks like a first-timer.”
XRP ETF Likely?
ETF Store President Nate Geraci stated that approval was a matter of when, not if, and that a change in administration would speed up the process. “But that “when” will be *much* further out in the future unless there’s a change in administration.”
According to CryptoPotato, Robinhood executive Dan Gallagher is the front-runner to chair the SEC if Donald Trump wins re-election. He supports cryptocurrency and is significantly more likely to approve such items than the current chair, Gary Gansler, who has just procrastinated.
A spokesperson for Canary Finance informed Fox Business: “We’re seeing encouraging signs of a more progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum – specifically investors seeking access to enterprise-grade blockchain solutions and their native tokens such as XRP,”
Greyscale announced in September a dedicated XRP trust that will watch the asset’s price and may serve as a forerunner for conversion to a spot XRP ETF, as it has done with BTC and ETH funds. Ripple CEO Brad Garlinghouse is hopeful that XRP will eventually have its own ETF, despite the company’s continuing legal struggle with the SEC.
XRP Price Outlook
There was no reaction on spot XRP markets, with the asset remaining flat on the day at $0.532 at the time of writing. Additionally, the Ripple cross-border transaction token has slumped 11% over the past week.
XRP topped $0.70 during the 2024 market peak in mid-March but has fallen back to its current levels, which are 84% down from its January 2018 all-time high of $3.40. It appears that only an outright victory against the SEC will be the catalyst for moving this asset higher.
Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.