Just a few days after Bitwise registered its application with the Securities and Exchange Commission (SEC) to launch its XRP spot ETF, it is the turn of Canary Capital to embark on this far from won quest. .
After Bitwise, it’s Canary Capital’s turn to enter the battle
Crypto investment fund Canary Capital filed this Tuesday an application to the Securities and Exchange Commission (SEC). Its objective: launch its own XRP spot ETF on American territory and thus offer an alternative to the multiple spot Bitcoin (BTC) ETFs and spot Ethereum (ETH) ETFs present on the market.
In its application for registration, the investment company presents its XRP spot ETF in more detail :
The Canary XRP ETF offers investors the opportunity access the Ripple (XRP) market through a traditional brokerage account without having to directly hold the asset. This will mitigate potential barriers and/or risks associated with acquiring and owning XRP.
💡 What is Ripple (XRP)?
For its spot XRP ETF, Canary Capital will base itself on the price of XRP using the XRP-USD reference rate imagined by CME Group and Crypto Facilities (CF). It is a spot pricing index that is based on transaction data from several XRP-USD markets operated by various crypto exchanges.
Canary Capital founder Steven McClurg explained why the investment fund wanted to launch its XPR spot ETF:
We see encouraging signs a more progressive regulatory environment couple to growing investor demand 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.
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Could the SEC deny the launch of a spot XRP ETF?
Canary Capital is not the only company to share this same vision of ETFs. Last week, Bitwise filed a similar request for the launch of its own XPR spot ETF with the Delaware Division of Corporations
However, there is currently no indication that these two requests will be successful. Indeed, Ripple and the SEC were pitted against each other in a legal dispute whose outcome failed to heal their relationship.
For the American authority, the San Francisco-based company allegedly sold unregistered securitieswhich constituted a violation of the Financial Markets Act.
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For several years, the two entities clashed in court. Although Ripple emerged somewhat victorious from this legal dispute, the company was still hit with a $125 million civil fine last August.
Note that it is unlikely that the SEC will deliver its verdict by the end of the year. Indeed, the American financial policeman generally takes many months to study this type of request.
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Source: Securities and Exchange Commission
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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