The spot ETF market is racing to launch a fund that tracks XRP, the seventh-largest cryptocurrency by market cap. Canary Capital Group has filed an application with the U.S. Securities and Exchange Commission to launch an XRP spot ETF. The move is in response to growing investor demand and expectations of a more welcoming regulatory environment for cryptocurrencies, said Stephen McClurg, one of the company’s founders.
This trend comes after the huge success of spot Bitcoin and Ethereum ETFs. Other companies like VanEck Asset Management and 21Shares AG are also working on launching Solana spot ETFs. Spot Bitcoin ETFs have already attracted nearly $19 billion in inflows, while spot Ethereum ETFs have seen nearly $550 million in outflows.
Canary’s filing did not disclose the estimated fees for the new ETF, which would be the company’s first. The filings show that ETF providers are looking to expand the scope of individual investments in the cryptocurrency market. Stephane Ouellette explained that the move reflects companies’ interest in developing new products that are compatible with regulatory developments in the cryptocurrency market.
The developments come after a court ruling against Ripple in August. In September, Grayscale Investments launched the Grayscale XRP Trust, giving investors the opportunity to gain exposure to the digital currency XRP, a peer-to-peer network designed to facilitate cross-border financial transactions.
