A New XRP Exchange-Traded Fund (ETF) Filed Despite SEC Challenges
Despite the US Securities and Exchange Commission's (SEC) decision to challenge the securities status of XRP through an appeal, a second XRP Exchange-Traded Fund (ETF) has been filed. Experts believe these ETF filings are politically motivated and strategic in nature.
Canary Capital Group Officially Files for XRP ETF
Canary Capital Group LLC has officially filed for an XRP Exchange-Traded Fund (ETF) with the SEC, following a similar move by Bitwise. The purpose of this filing is to provide exposure to the value of XRP held by the Trust.
Details of the XRP ETF Filing
In a post by Fox Business reporter Eleanor Terrett, it was mentioned that the decision by Canary to file for an XRP ETF was driven by the favorable regulatory environment and increasing demand for ETF-related products for top Digital assets.
"We’re seeing encouraging signs of a more progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum – specifically investors seeking access to enterprise-grade Blockchain Solutions and their native tokens such as XRP."
The offering is intended to be continuous, and the Trust is not subject to Regulation under the 1940 Act, indicating investors in the Trust won't receive the same regulatory protection as funds registered under the Act. The Trust aims to provide investors with the opportunity to assess the XRP Market without directly holding the asset.
"The Trust would not use derivatives that would subject the Trust to additional counterparty and Credit risk. The sponsor believes that the design of the Trust will enable certain investors to more efficiently and effectively implement strategic and tactical asset allocation Strategies that use XRP by investing in the shares rather than purchasing, holding, and trading XRP directly."
Potential Approval of the XRP ETF
The president of the ETF Store, Nate Geraci, views the timing of XRP ETF filings as a strategic move, likely related to the upcoming November election. He believes Bitwise's filing is significant, indicating a strategic approach rather than a hasty decision.
"The point is that XRP ETF is probably coming at some point… Bitwise just early. Politics clearly matter here in the short term, but I think this is all inevitable over time."
Senior ETF analyst at Bloomberg, Eric Balchunas, sees this as a political action and a "cheap call" option for the outcome of the US presidential election. Approval of the ETFs seems to depend on the results of the Legal battle surrounding XRP.
At the time of reporting, XRP was priced at $0.53, experiencing an 11.5% decline in the last seven days.
