XRP ETF Incoming? Canary Capital Follows Bitwise in Pushing XRP to the Mainstream
TL;DR
Canary Capital Group files with the SEC to launch the Canary XRP ETF, marking its debut in the cryptocurrency exchange-traded funds market.
The application comes after Bitwise Asset Management’s proposal for an XRP ETF.
Ripple Labs faces penalties for selling XRP without authorization, but interest in XRP-linked products continues to rise.
Canary Capital Group has filed an application with the Securities and Exchange Commission (SEC) to launch the Canary XRP ETF, marking its entry into the market of exchange-traded funds (ETFs) linked to cryptocurrencies.
The announcement follows the recent proposal by Bitwise Asset Management, which also submitted an application for an XRP-related ETF last week. The firm, founded by former Valkyrie Funds co-founder Steven McClurg, expresses optimism about a more favorable regulatory environment and growing demand from investors. However, the filing does not include details such as a ticker symbol or projected fees. If the SEC approves the application, this ETF will represent the firm’s first fund.
The Role of ETFs in the Crypto Industry
The launch of Bitcoin and Ethereum ETFs earlier this year has been pivotal for the crypto industry and its future in the financial world. Bitcoin funds have accumulated nearly $19 billion in assets. However, Ethereum ETFs have experienced outflows of approximately $550 million.
Other investment firms, such as VanEck and 21Shares, are also competing to develop funds linked to popular tokens like Solana, indicating a widespread push within the industry to diversify the options available to investors.
Ripple (XRP) in Trouble
Despite the progress in creating ETFs, Ripple Labs, the company behind the cryptocurrency, is facing penalties for selling the token without the proper regulatory authorization. A federal judge ordered Ripple Labs to pay a civil penalty in August for this reason. However, interest in XRP-linked ETFs has only continued to grow. Recent movements in the industry suggest that providers of these financial products are on the lookout for regulatory changes that could open the door to new cryptocurrency offerings.
The path toward creating cryptocurrency products is a clear objective for many companies in the sector, regardless of the specific approval of this one or other crypto ETFs.
Filed under: News - @ October 9, 2024 3:26 pm