The cryptocurrency ETF market is expanding at an incredible pace as news of the filing of a second XRP exchange-traded fund (ETF) spreads around the world. Canary Capital, a boutique investment and corporate advisory firm in Sydney, has followed in the footsteps of Bitwise and has just submitted an XRP ETF. With the new ETF filing, the XRP price could see potential changes in the future.
Canary Capital Files New XRP ETF
On Tuesday, October 8, Canary Capital filed the official S-1 filing for the XRP ETF with the U.S. Securities and Exchange Commission (SEC). The filing comes shortly after another top asset management firm, Bitwise, filed for an ETF on September 30, making it the first XRP-based ETF in the cryptocurrency market.
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According to a new filing from Canary Capital, the Trust’s investment objective is to provide direct exposure to the value of XRP, allowing investors to access this cryptocurrency market through brokerage accounts. Through this method, Canary Capital seeks to limit potential barriers to market access and reduce the risks associated with acquiring and holding XRP.
Canary Capital also stated that it aims to track XRP’s performance in the market as measured by the Trust’s price benchmark. This price benchmark utilizes a similar methodology to the real-time price of the Chicago Mercantile Exchange (CME) CF Ripple Index.
While disclosing the objectives and risk factors associated with the XRP ETF, Canary Capital failed to disclose the identity of the custodian for the potential XRP ETF. The investment management company also did not provide details about the ticker that will be used for the XRP ETF, but stated that the custodian of the investment product will be the Delaware Trust company.
Despite the optimism that Canary Capital’s new XRP ETF filing has generated in the cryptocurrency community, both its application and Bitwise’s application still require SEC approval before being released to the market.
Given Ripple’s ongoing legal battle with regulators, rapid approval seems unlikely. Earlier this month, the US SEC filed a new appeal to challenge the court’s July 2023 ruling that programmatic sales of XRP were not considered securities.
XRP Price Decline Optimism Due to Regulatory Uncertainty
Despite Canary Capital’s new XRP ETF filing, the price of XRP is trending lower, showing no signs of breaking out of its bearish momentum trend. Data from CoinMarketCap shows that XRP is down 0.72% over the past 24 hours and down 0.79% over the past week.
The cryptocurrency has been in the red for the past few weeks, only rising slightly when market conditions improve significantly. With the new XRP ETF, many expect the price of XRP to rebound as expectations for the investment product rise in the cryptocurrency space. However, XRP is still consolidating around the $0.5 level while experiencing a decrease in 24-hour trading volume.
It is clear that XRP’s bullish momentum has been completely overshadowed by regulatory uncertainty and negative sentiment. Nonetheless, many in the XRP community continue to maintain a positive outlook, expecting the price of XRP to rise soon.
Source: NewsBTC.com