Crypto investment firm Canary Capital has applied to create a spot XRP exchange-traded fund (ETF), becoming the second issuer to bid for an XRP fund in the past seven days.
Canary Capital said in a filing with the Securities and Exchange Commission on October 8 that its ETF provides investors with access to the XRP (XRP) market through traditional brokerage accounts without the potential entry barriers or risks of acquiring and holding XRP directly. He said he would make it possible. .”
Canary said its XRP ETF will track the price of XRP using the Chicago Mercantile Exchange (CME) CF Ripple Index, a real-time price benchmark product.
The Canary XRP ETF provides investors with exposure to XRP. Source: Samsung Electronics
The fund said it would not use derivatives to track the value of XRP, which could expose the product to “additional counterparty and credit risk.”
“(Canary Capital) believes that the design of the Trust will allow certain investors to more effectively and efficiently implement strategic and tactical asset allocation strategies using XRP by investing in stocks rather than purchasing, holding and trading XRP directly.”
Canary Capital did not disclose who the custodian of the XRP ETF is, nor did it clarify which stocks the fund would be listed on.
Canary Capital’s move to apply for an XRP ETF comes seven days after cryptocurrency asset manager Bitwise filed for an XRP fund with the SEC on October 2.
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XRP is currently trading at $0.53, up 0.4% on the day and trading flat for the week.
XRP rose 0.4% the day after the application for the second XRP ETF. Source: Cointelegraph
If Canary Capital or Bitwise’s application is approved by the SEC, it would become the first spot XRP fund to receive approval from the regulator.
However, there could be significant barriers to approval, including the SEC’s appeal of the lawsuit against XRP issuer Ripple. Regulators claimed the tokens were unregistered securities and accused the company of raising $1.3 billion through an XRP offering.
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