The crypto ETF market is expanding at an alarming rate, with news from a second XRP Exchange Traded Fund (ETF) file spreading across space. Canary Capital, a Sydney-based boutique investment and corporate advisory firm has just registered an XRP ETF, following Bitwise’s example. With the new ETF application, the the price of XRP may undergo a possible change in the future.
Canary Capital registers new XRP ETF
On Tuesday, October 8th, Canary Capital sent an official S-1 filing for an XRP ETF with the United States Securities and Exchange Commission (SEC). This filing comes shortly after Bit by bitAnother major asset management firm filed for an ETF on September 30, marking the first XRP–ETF based in the crypto market.
Related Reading
According to New order from Canary CapitalThe Trust’s investment objective is to provide direct exposure to the value of XRP by allowing investors to access the market for this cryptocurrency through a brokerage account. Through this method, Canary Capital aims to limit potential market access barriers and reduce the risks involved in acquiring and holding XRP.
Canary Capital also stated that it intends to follow the XRP performance in the marketas measured by the Trust’s pricing benchmark. This pricing benchmark will utilize a similar methodology to the real-time pricing of the Chicago Mercantile Exchange (CME) CF Ripple index.
By disclosing the objectives and risk factors associated with a ETFXRPCanary Capital has not disclosed the identity of the custodian of its potential XRP ETF. The investment manager also did not inform the ticker to be used for its XRP ETF, however, it revealed that the administrator of the investment product would be the Delaware Trust Company.
Despite the optimism Canary Capital’s new XRP ETF application has generated waves in the crypto community, both its application and Bitwise’s still require SEC approval before being released to the market.
Currently, the likelihood of a quick approval appears low, considering Ripple’s ongoing legal case battle with the regulator. Earlier this month, the US SEC presented a new appeal to challenge the court’s July 2023 ruling that programmatic sales of XRP are not considered securities.
XRP Price Falls as Regulatory Uncertainty Clouds Optimism
Despite Canary Capital’s new XRP ETF filing, the price of XRP is in a downtrendshowing no signs of exiting bearish momentum trends. Data from CoinMarketCap shows that XRP is down 0.72% in the last 24 hours and another 0.79% in the past week.
Related Reading
THE cryptocurrency is in the red In recent weeks, we have only recorded slight gains as market conditions become significantly favorable. With the new XRP ETF, many would expect the XRP price will riseas anticipation for the investment product increases in the crypto space. However, XRP is still consolidating around the $0.5 mark even as it experiences a decrease in its 24-hour trading volume.
Of course, XRP’s bullish momentum was completely overshadowed by regulatory uncertainty and negative feeling. Despite this, many in the XRP community continue to to maintain a positive outlook, expecting the price of XRP to rise soon.
Featured image created with Dall.E, chart from Tradingview.com