cryptopotato.com
On Oct. 8, ETF issuer Canary Capital filed with the US Securities and Exchange Commission for an exchange-traded product for Ripple’s XRP.
It is the second filing for an XRP-based fund in a fortnight, following Bitwise’s application for the Bitwise XRP ETF trust on Sept. 30.
The firm stated that the product would track XRP’s price using the Chicago Mercantile Exchange (CME) CF Ripple index.
Bloomberg ETF analyst Eric Balchunas said he wasn’t familiar with this issuer, who “looks like a first-timer.”
XRP ETF Likely?
ETF Store President Nate Geraci opined that approval was a matter of when, not if, adding that a change in administration would accelerate the process.
“But that “when” will be *much* further out in the future unless there’s a change in administration.”
This week, CryptoPotato reported that Robinhood executive Dan Gallagher was the lead candidate to head the SEC should Donald Trump become president again in November. He is pro-crypto and far more likely to be favorable to such products than the incumbent chair, Gary Gansler, who has simply procrastinated on approving them.
A spokesperson for Canary Finance told Fox Business:
“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,”
In September, Grayscale announced a dedicated XRP trust that will track the price of the asset and could be a precursor for conversion to a spot XRP ETF, as it has done with BTC and ETH funds.
Ripple CEO Brad Garlinghouse has been confident that XRP will inevitably see its own ETF despite the firm’s ongoing legal battle with the SEC.
XRP Price Outlook
There was no reaction on spot XRP markets, with the asset remaining flat on the day at $0.532 at the time of writing.
Additionally, the Ripple cross-border transaction token has slumped 11% over the past week.
XRP topped $0.70 during the 2024 market peak in mid-March but has fallen back to its current levels, which are 84% down from its January 2018 all-time high of $3.40.
It appears that only an outright victory against the SEC will be the catalyst for moving this asset higher.