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Canary Capital files SEC application for XRP ETF approval

Canary Capital files SEC application for XRP ETF approval

Grafa2024/10/09 00:10
By: Mahathir Bayena

Canary Capital Group LLC has submitted a registration with the U.S. Securities and Exchange Commission (SEC) to launch its proposed Canary XRP (CRYPTO:XRP) ETF.

The ETF is intended to provide investors with exposure to XRP, the cryptocurrency based on the XRP Ledger, through a more accessible format than directly holding digital assets.

This move could simplify XRP investments by making it available via traditional brokerage platforms.

According to the SEC filing, the Canary XRP ETF will be an exchange-traded product (ETP) that tracks the value of XRP using the CME CF Ripple-Dollar Reference Rate – New York Variant.

This rate aggregates data from leading XRP trading venues to establish a reliable pricing benchmark.

The goal of the fund is to offer investors exposure to XRP while effectively managing costs and liabilities associated with digital assets.

Fox Business reporter Eleanor Terrett revealed that Canary Capital Group filed the necessary S-1 form for the proposed ETF.

According to the filing, Canary is a newer entrant in the cryptocurrency investment space, founded by Steven McClurg, who also established Valkyrie Funds.

A spokesperson for Canary stated, "We’re seeing encouraging signs of a more progressive regulatory environment," highlighting growing investor demand for cryptocurrencies beyond Bitcoin and Ethereum, particularly XRP.

The Canary XRP ETF differs from traditional mutual funds and investment companies, as it won’t operate under the Investment Company Act of 1940 or involve direct XRP trading.

Instead, shares will be created and redeemed in baskets, providing liquidity through authorized participants.

The filing also notes potential risks, including market volatility and regulatory uncertainty.

The application positions Canary to potentially expand access to XRP, but the SEC’s approval remains uncertain.

Canary follows similar efforts by Bitwise, which also filed for an XRP ETF recently.

Whether this effort will succeed in further integrating XRP into traditional investment platforms depends on the SEC’s upcoming decisions.

At the time of writing, the XRP price was $0.5296.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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