- Canary Capital has filed for an XRP ETF, joining the race following Bitwise’s recent filing and reflecting growing institutional interest in offering exposure to the cryptocurrency.
- Additionally, Canary Capital’s move to file for an XRP ETF also signals a potential for the regulatory battle between the U.S. SEC and Ripple winding up.
Canany Capital, founded by alternative asset manager Valkyrie, recently filed for an XRP ETF, joining the growing list of institutions eager to offer exposure to the cryptocurrency. This news follows Bitwise’s filing earlier this month for what was widely anticipated as the first-ever XRP ETF, now, Canary Capital is throwing its hat in the ring.
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. https://t.co/jMW4NUjhBH
— Nate Geraci (@NateGeraci) October 8, 2024
XRP, the native token to Ripple has been making headlines, as previously reported, the SEC dropped its appeal in the ongoing legal battle with Ripple.
Ripple which leverages XRP has been in a legal battle with the regulators for four years now and it does not seem to be nearing a halt. Reminiscing, the U.S. courts recently gave Ripple a partial win recognizing that XRP is not a security.
Subsequent to the victory, doors opened for financial products like ETFs which required regulatory clarity to gain approval. Not long, that has become a dream that has been put on pause after the SEC recently dropped a boomer and filed for an appeal.
Despite current legal developments, Nate Geraci, the president of ETF Store, an advisory firm specializing in ETFs, believes that an XRP ETF is inevitable. In his view via a post on the X platform, “it’s not a question of “if” but “when” the financial product will be approved.
However, Geraci is cautious about the timeline, noting that approval may not come any time soon. He suggests that a change in the U.S. administration, implying a shift in regulatory approach, might accelerate the process. As it stands, the regulatory environment for cryptocurrency in the U.S. remains uncertain, with the SEC still wielding significant power over the fate of many digital assets.
Canary Capital’s move to file for an XRP ETF is part of a broader trend aimed at bridging traditional investors and the volatile cryptocurrency world. Additionally, this timing also signals a potential for the regulatory battle winding up especially following Ripple’s partial victory over the SEC.
Currently holding the 7th position by market cap, XRP is swapping hands with $0.5326 marking a 0.86% and 2.66% surge in the past 24 hours and past week respectively. Also, XRP’s market cap has seen a noble 0.35% surge leaving the mark at $30.18 billion. Not forfeiting a 36.85% surge in its trading volume, stopping at $1.15 billion.
Additionally, Ripple has gained substantial traction within the institutional investment vehicle with investors now being able to diversify beyond Bitcoin and Ethereum.
The demand for diversified cryptocurrency ETFs is rising, driven by investors’ desire for exposure to assets beyond Bitcoin and Ethereum. XRP, given its legal clarity and established position in the market, is a natural candidate for such products.
