Canary Capital has officially filed for an XRP ETF, following Bitwise’s similar move a week earlier. The ETF aims to offer investors exposure to XRP without requiring direct purchases of the token.
Managed by Canary Capital Group, the fund will track XRP’s value through the CME CF Ripple, allowing institutional and retail investors to invest in XRP via traditional financial markets. This structure simplifies complexities related to custody, security, and regulation.
This filing mirrors Bitwise’s recent spot XRP ETF filing, marking a significant step toward integrating XRP into traditional financial products like ETFs.
The Trust’s custodian will secure XRP in both cold and hot wallets, employing strict security protocols. Shares will be created and redeemed in large baskets via authorized participants who deposit or receive cash equivalent to XRP.
Canary Capital expressed confidence in the evolving crypto market, highlighting increasing investor demand for exposure to cryptocurrencies beyond Bitcoin and Ethereum. A spokesperson stated, “We’re seeing encouraging signs of a more progressive regulatory environment…specifically investors seeking access to enterprise-grade blockchain solutions and their native tokens such as XRP.”
Last week, the SEC appealed a court ruling in its case against Ripple Labs regarding XRP’s classification. A federal judge’s July 2023 decision deemed only Ripple’s institutional XRP sales as unregistered securities offerings. However, the SEC is challenging the lighter $125 million penalty, a far cry from the $2 billion it sought.
This regulatory uncertainty has delayed progress toward the approval of an XRP ETF, with approval now expected to be postponed until 2025 or later.
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