The race to launch an exchange-traded fund (ETF) tracking XRP, the seventh-largest digital token, is underway.
Canary Capital Group, a newly established digital asset investment firm founded in September, has filed paperwork with the Securities and Exchange Commission (SEC) to introduce the Canary XRP ETF, as reported by Bloomberg. This filing follows just a week after Bitwise Asset Management Inc. became the first company to submit a request for an XRP-focused ETF.
Steven McClurg, co-founder of Canary and previously with Valkyrie Funds, stated that the firm was motivated by “signs of a more progressive regulatory environment coupled with growing demand from investors.”
These filings come on the heels of the much-anticipated launch of Bitcoin and Ether ETFs earlier this year. Additionally, companies such as VanEck Asset Management and 21Shares AG are working on launching funds tied to Solana. Bitcoin ETFs have already attracted nearly $19 billion, while Ether ETFs have seen approximately $550 million in outflows.
Canary’s filing did not disclose a ticker or estimated fee for its ETF, which would be its first. The XRP filings signal that ETF providers are keen on expanding the crypto market to retail investors.
Stephane Ouellette, co-founder and CEO of FRNT Financial, noted, “This demonstrates that ETF providers will be closely following the regulatory landscape for perceived daylight in allowing them to offer new products.” Stephane added that “there’s still uncertainty whether they will be approved and it very much makes sense for two firms born out of the crypto native landscape to try to broaden their product offerings.”
The filings come after a federal judge ordered Ripple Labs Inc. in August to pay a civil penalty for selling XRP to institutional investors without registering it with U.S. regulators, concluding a years-long legal battle.
In September, Grayscale Investments, a crypto asset manager, launched the Grayscale XRP Trust, offering investors the chance to gain exposure to the token that powers the XRP Ledger, a peer-to-peer network designed to facilitate cross-border financial transactions.
