XRP ETFs: Canary Capital and Bitwise Apply for SEC Approval

Canary Capital and Bitwise, two prominent investment firms, have filed applications with the SEC to launch XRP ETFs. This move signals growing interest in XRP investments from both institutional and retail investors. Canary Capital, founded by former Valkyrie Funds co-founder Steven McClurg, submitted its paperwork just a week after Bitwise filed a similar application.

Both firms cited a more progressive regulatory environment and increasing investor demand as motivations for their filings.

Canary Capital, founded by former Valkyrie Funds co-founder Steven McClurg, filed its application on Tuesday, just a week after Bitwise took similar action. Canary Capital stated that the move was motivated by “signs of a more progressive regulatory environment and growing demand from investors.”

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The proposed Canary XRP ETF would track XRP’s value using the CME CF Ripple. This uses traditional financial infrastructure, allowing institutional and retail investors to access XRP with fewer operational and regulatory hurdles.

On October 2, asset manager Bitwise became the first firm to file for an XRP ETF by registering a trust entity. Registering a trust is the first step towards launching an ETF. Grayscale previously retrieved its XRP trust, suggesting a possible conversion into an ETF.

Responding to market demand for XRP, Canary Capital is launching its first ETF. However, it remains unclear if the SEC will approve the application. Stephane Ouellette, co-founder and CEO of FRNT Financial, commented, “There’s still uncertainty around approval, and it makes sense for two firms with roots in the crypto space to try to expand their product offerings.”

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Ripple CEO Brad Garlinghouse expressed enthusiasm for the efforts to launch an XRP ETF. He shared a GIF with the phrase, “It’s happening again.”