Canary Capital Files for Spot XRP ETF Product in the US Amid Growing Confidence in the Cryptocurrency's Future
- DDDOriginal
- 2024-10-09 10:10:16737browse
Crypto investment firm Canary Capital has made a bold move by filing for a spot XRP ETF product in the United States. The firm named the product the Canary XRP ETF in the form S-1 registration statement lodged with the Securities and Exchange Commission (SEC).
Crypto investment firm Canary Capital has filed for a spot XRP ETF product in the United States, naming the product the Canary XRP ETF in the form S-1 registration statement lodged with the Securities and Exchange Commission (SEC).
Growing Positive Sentiment About XRP ETF
After Bitwise made the first move for an XRP ETF in the United States, Canary Capital's filing now might be a sign of growing confidence in what the future holds for XRP.
The firm said in its registration statement that it “observed a progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum.”
However, despite Canary Capital's positivity, the question of a progressive regulatory environment remains debatable, considering that the US SEC has filed a Notice of Appeal to contest the July 2023 Ripple lawsuit ruling that XRP is not a security when traded on secondary exchanges.
This appeal will further elongate the commission's lawsuit against Ripple Labs, with XRP coming off as collateral damage. With the coin's securities status still in doubt, it remains to be seen how the regulator will receive the two XRP ETF filings. The ETF product will track the price of the underlying cryptocurrency and is subject to the US SEC’s approval.
Canary Capital is the brainchild of Steven McClurg, the Founder of Valkyrie Funds. With enough experience in the crypto and financial markets, it is likely that the Canary Capital's move might end up counting for something.
Uncertainties Around Crypto ETF Products
There is a growing speculation that the SEC Appeal in the Ripple lawsuit will impact the chances of an XRP ETF.
With Bitcoin and Ethereum gaining the regulator's approval for spot ETF products, investment firms have maintained positivity that other cryptocurrencies, such as XRP, deserve related treatment. However, the US SEC has continued to crack down on firms operating in the industry, naming some tokens, such as XRP, in the crosshairs.
The lack of clarity on the status of most altcoins might deter ETF approval for other top altcoins like Solana and Dogecoin. Though firms like Crypto Com are counter-suing the SEC, many in the industry doubt other crypto ETFs can be approved under Gary Gensler's SEC.
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