Canary Capital, a crypto investment firm, has submitted a proposal to establish a spot XRP exchange-traded fund (ETF), becoming the second entity to do so within a week. The ETF aims to provide investors with exposure to the XRP market without the complexities of directly acquiring and holding XRP. Canary Capital plans to track XRP's price using the Chicago Mercantile Exchange (CME) CF Ripple index. Unlike other funds, they intend to avoid using derivatives to track XRP's value to minimize counterparty and credit risks. The custodian of the XRP ETF and its listing ticker remain undisclosed. This move follows Bitwise's similar filing for an XRP fund. Approval from the SEC would mark the first spot XRP fund sanctioned by the regulator, although challenges may arise due to the ongoing legal battle between the SEC and Ripple over XRP's classification as an unregistered security. Read more AI-generated news on: https://app.chaingpt.org/news

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