The race has begun to roll out an exchange-traded fund that tracks XRP, the seventh largest digital token.
The application to launch the Canary XRP ETF was filed with the Securities and Exchange Commission on Tuesday by Canary Capital Group, a newly formed investment firm specializing in digital assets. The company, founded in September, filed its application just a week after Bitwise Asset Management was recorded as the first company to apply for an ETF tracking the token.
Canary, founded by former Valkyrie Funds co-founder Stephen McClurg, said in a statement that it was encouraged by “signs of a more progressive regulatory environment coupled with increased demand from investors.”
These filings follow the launch of the long-awaited Bitcoin and Ether holding ETF earlier this year, and come as companies such as VanEck Asset Management and 21Shares AG seek to introduce funds linked to Solana tokens. It was done. The Bitcoin ETF has generated nearly $19 billion in profits since its inception, while the Ether ETF has experienced outflows of approximately $550 million.
Canary's application did not include a ticker or estimated fees. This is the company's first ETF.
XRP's filings suggest the issuer is pressuring regulators to open up the crypto boom to mainstream retail markets.
“This shows that ETF providers are closely monitoring the regulatory landscape when allowing new product offerings,” said Stéphane Ouellette, co-founder and CEO of FRNT Financial. Ta. “There is still uncertainty as to whether it will be approved or not, so it makes a lot of sense for two companies coming from a crypto-native environment to look to expand their product offerings.”
These bids were made in the wake of a certain event. In August, a federal judge ordered Ripple Labs to pay a civil penalty for allegedly selling XRP tokens to institutional investors without registering with U.S. regulators, following a lengthy legal dispute.
In September, crypto asset management company Grayscale Investments announced the launch of the Grayscale XRP Trust, which provides investors with exposure to the tokens that power the XRP Ledger. It is a decentralized peer-to-peer network aimed at supporting cross-border financial transactions.
