Coinspeaker Canary Capital Follows Bitwise and Files for Spot XRP ETF despite SEC Appeal
A week after the US Securities and Exchange Commission (SEC) chose to appeal the court judgment of a $125 million penalty in the Ripple lawsuit Canary Capital has filed to bring a spot XRP exchange-traded fund (ETF). After Bitwise, this is also the second issuer to file for XRP ETF within the past seven days.
In its filing submitted to the US SEC on Tuesday, October 8, Canary Capital stated that its exchange-traded fund would give investors access to XRP via “a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding XRP directly”.
Thus, the Canary XRP ETF would track the XRP XRP $0.53 24h volatility: 0.0% Market cap: $29.99 B Vol. 24h: $946.54 M price by using the Chicago Mercantile Exchange (CME) CF Ripple index. Also, it said that the fund would avoid using derivative products for tracking the value of XRP adding that their ETF would be subject to “additional counterparty and credit risks”.
Canary Capital has yet to disclose a few details such as the ticker for the XRP ETF fund as well as the custodian they would work with. Speaking to Fox Business, a spokesperson at Canary Capital said:
“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.”
Ripple Lawsuit: A Major Barrier to XRP ETF
As said, the US SEC has decided to appeal the $125 million penalty announced by the court to Ripple in the XRP lawsuit. However, the securities regulator isn’t satisfied with it as it demanded $2 billion in penalty beforehand.
Commenting on the development, ETF Store President Nate Geraci stated that it’s a matter of when, not if for an XRP ETF approval. Commenting on yesterday’s development, he wrote:
“Another XRP ETF filing… Approval a matter of when not if IMO. But that “when” will be *much* further out in the future unless there’s a change in administration.”
The recent appeal will continue to drag the case further. As a result, despite the news of Bitwise XRP ETF and Canary XRP ETF filings, the XRP price hasn’t moved much and continues to trade at $0.532 with a market cap of $30 billion.
However, amid the XRP whale accumulation, some market analysts predict a 10x XRP price rally from here onwards. While the crypto community seems curious about an XRP ETF, it will be interesting to see whether there are enough takes for it. The spot Ether ETFs have delivered a poor show within two months of launch amid a lack of retail and institutional participation.
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Canary Capital Follows Bitwise and Files for Spot XRP ETF despite SEC Appeal
