Canary Capital Files for XRP Exchange-Traded Fund, Joining the Race to Offer Crypto Exposure

In a move that signals growing interest in crypto-based investment products, Canary Capital Group recently filed an application with the Securities and Exchange Commission (SEC) for approval of an XRP exchange-traded fund (ETF).

Canary Capital Group, a crypto-focused investment firm, has filed an application with the Securities and Exchange Commission (SEC) for an XRP exchange-traded fund (ETF).

The filing, made on Friday, highlights the fund's aim to provide direct exposure to the value of XRP held by the Trust. It further emphasizes the opportunity for investors to access the XRP market via a traditional brokerage account, without the barriers or risks associated with acquiring and holding XRP directly.

While details like the proposed ticker symbol and specific fee structure are still lacking in the filing, Canary emphasizes the fund's strategy to track XRP's price using the Chicago Mercantile Exchange (CME) CF Ripple index. This strategy is designed to lower entry barriers and mitigate risks for investors seeking a safer and more convenient way to gain exposure to XRP.

Founded in September 2024 by former Valkyrie Funds co-founder and CEO Steven McClurg, Canary is leveraging the evolving regulatory landscape to its advantage.

“We're seeing encouraging signs of a more progressive regulatory environment, coupled with growing demand from investors for sophisticated access to cryptocurrencies - beyond just Bitcoin and Ethereum,” a source from the firm stated. “Specifically, investors are looking for access to enterprise-grade blockchain solutions like XRP.”

The filing follows a similar proposal from Bitwise Asset Management, setting up a race to become the first firm to launch an XRP-focused ETF in the U.S. Grayscale Investments also recently launched the Grayscale XRP Trust, offering another avenue for investors to gain XRP exposure.

This push for an XRP ETF also comes after the successful launches of Bitcoin and Ethereum ETFs earlier this year, which attracted significant investor interest. Notably, Bitcoin ETFs have garnered nearly $20 billion in inflows since their launch.

The effort coincides with a legal development for Ripple Labs, the company behind XRP. In August, a federal judge ordered Ripple to pay a civil penalty for selling XRP to institutional investors without proper registration, concluding a long-standing legal dispute with the SEC. However, the SEC filed an appeal against the ruling, which some experts believe could potentially hinder the approval of ETFs.

In response to the latest ETF filing, Ripple CEO Brad Garlinghouse posted a cryptic tweet, sharing a GIF with the message, “It's happening again.” This suggests that, despite ongoing legal challenges, the crypto industry remains optimistic.

With increasing global adoption and a growing network of partnerships, the demand for an XRP ETF is expected to gain traction, potentially driving momentum for other spot crypto ETFs.