The realm of cryptocurrency Exchange Traded Funds (ETFs) is witnessing rapid growth, marked by the news of a second XRP ETF filing making waves in the industry. Canary Capital, a boutique investment and corporate advisory firm based in Sydney, has recently filed for an XRP ETF, following the pioneering move by Bitwise. This development has the potential to influence the future price trajectory of XRP significantly.
Canary Capital’s Strategic Move: Filing a New XRP ETF
On Tuesday, October 8, Canary Capital took a strategic step by submitting an official S-1 filing for an XRP ETF with the United States Securities and Exchange Commission (SEC). This filing closely follows Bitwise’s initiative on September 30, which marked the inception of the first-ever XRP-based ETF in the cryptocurrency market. The implications of these filings could be profound for investors and the broader financial landscape.
Understanding the Objectives of Canary Capital’s XRP ETF
Canary Capital’s new filing outlines its primary investment goal: to offer investors direct exposure to the value of XRP. This enables them to access the cryptocurrency market conveniently through a brokerage account. By adopting this approach, Canary Capital aims to minimize the barriers that often deter investors from entering the market and mitigate the risks associated with acquiring and holding XRP.
Tracking XRP’s Market Performance
The firm plans to monitor the performance of XRP using a Pricing Benchmark, similar to the real-time price methodology of the Chicago Mercantile Exchange (CME) CF Ripple index. Despite detailing its objectives and risk factors, Canary Capital has not disclosed the identity of the custodian for its potential XRP ETF. Additionally, the investment management firm has yet to unveil the ticker for its XRP ETF but has confirmed that the Delaware Trust Company will act as the Trustee for the investment product.
Regulatory Hurdles and Market Sentiment
While Canary Capital’s new XRP ETF filing has generated enthusiasm within the crypto community, it, along with Bitwise’s application, still requires SEC approval to proceed to market launch. However, the prospects of swift approval appear slim due to Ripple’s ongoing legal dispute with the regulator. Earlier this month, the SEC appealed to challenge the court’s ruling from July 2023, which determined that programmatic sales of XRP are not securities.
The Current State of XRP Pricing Amidst Uncertainty
Despite the excitement surrounding the new XRP ETF filing, XRP’s price has been on a downward trajectory, failing to break free from bearish trends. Data from CoinMarketCap indicates that XRP has decreased by 0.72% in the last 24 hours and another 0.79% over the past week. The cryptocurrency has experienced consistent declines in recent weeks, only achieving modest gains when market conditions become notably favorable.
Market Reactions and Future Prospects
The anticipation surrounding the new XRP ETF would typically lead to expectations of a price rally. However, XRP continues to consolidate around the $0.5 mark, with a noticeable decline in its 24-hour trading volume. The persistent regulatory uncertainty and prevailing negative sentiment have overshadowed XRP’s potential bullish momentum. Despite these challenges, the XRP community remains optimistic, hoping for an imminent price breakout in the near future.
