Canary Capital adds an XRP ETF application, following Bitwise’s filing a week earlier.
The second issuer seeking approval for an XRP fund in the last seven days, crypto investment firm Canary Capital has filed to launch a spot XRP exchange-traded fund (ETF).
In an Oct. 8 filing with the U.S. Securities and Exchange Commission (SEC), Canary Capital stated that its ETF would allow investors to track the price of XRP (tickers down $0.5315) “from a traditional brokerage account without many of the challenges that come with purchasing and storing XRP directly.”
Canary explained that its XRP ETF would use the CME CF Ripple Index — a real-time price index product — to track XRP’s price.
The fund would avoid using any derivative products for XRP, as doing so could increase exposure to counterparty and credit risks.
“[Canary Capital] believes that the design of the Trust will allow selected investors to manage strategic and tactical asset positions based on the use of XRP more efficiently and effectively by investing in the Shares than by directly acquiring, holding, and trading XRP.”
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Canary Capital did not disclose who would act as the custodian of the XRP ETF or the specific ticker under which the fund would trade.
Canary Capital’s move to register an XRP ETF comes just one week after crypto asset manager Bitwise petitioned the SEC on October 2 for a similar XRP fund.
At press time, XRP is priced at $0.53 – $0.54, marking a 0.4% increase on the day but remaining unchanged for the week.
If either the Canary Capital or Bitwise applications are approved by the SEC, it would be the first U.S.-approved spot XRP fund.
However, there may be significant hurdles to approval, including the ongoing SEC lawsuit against Ripple regarding XRP issuance. The SEC claims that XRP is a security and has accused Ripple of selling $1.3 billion worth of XRP.