Canary Capital Files Second XRP ETF In the US Despite Ongoing Legal Uncertainty

Crypto investment company Canary Capital has submitted an application for a second XRP exchange-traded fund (ETF) in the United States.

Crypto investment company Canary Capital has submitted an application for a second XRP exchange-traded fund (ETF) in the United States.

This filing follows Bitwise’s recent submission of a comparable application for a spot XRP ETF.

In light of the legal and regulatory uncertainty surrounding XRP, Canary's decision to proceed with this ETF demonstrates a bold approach to the asset's long-term potential.

Canary Capital submitted the S-1 filing on Tuesday, which is a requirement for issuers to file to publicly offer new securities.

The Canary ETF is particularly ambitious as the legal and regulatory fate of XRP remains shrouded in doubt, indicating a firm conviction in the digital asset's future role in the finance industry.

Canary's decision to file for a second XRP ETF in the US is a significant development, especially given the ongoing legal proceedings between Ripple Labs and the SEC regarding XRP's status as a security token.

The outcome of this case will have broad implications for crypto projects and their interactions with regulatory authorities.

However, Canary's filing is not driven by desperation or a fading dream. It reflects a broader trend of institutional interest in XRP and a possible shift in the regulatory landscape towards crypto projects.

The ETF filing also underscores a broader trend of institutional interest in XRP. While enthusiasm for XRP is unabated within the crypto community, many institutional investors are looking for a reliable, regulated way to gain an exposure without needing to purchase, store, and secure it.

Canary Capital's XRP ETF seeks to follow the CME CF Ripple index, providing investors with a consistent price reference. This lets one avoid the complications of buying, storing, and safeguarding the asset while indirectly exposing oneself to the XRP market.

Canary Capital's move is a bold one. Regardless of uncharted regulatory territory, XRP's role in institutionalized finance is far from unknown. If the ETF is approved, it would give large investors a clear pathway to entry into the XRP market. It may also signal XRP's entry into a new stage of maturity, based primarily on Ripple's settlement and SEC's attitude toward cryptos.

At the time of writing, XRP was trading at $0.53, up 0.5% on the 24-hour timeframe, and trading flat in the last week, data from CoinMarketCap shows.

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