Canary Capital has made a big move in the cryptocurrency market by applying for an exchange-traded fund (ETF) for spot XRP. This filing comes just seven days after Bitwise did the same thing, which shows that more people are interested in banking goods that focus on XRP.
When Canary Capital filed with the SEC, they explained how they planned for the ETF to give buyers access to XRP without having to buy the token directly. Canary Capital came up with this method to get rid of any problems that might come up when buying and keeping XRP. This makes investing easier.
The planned ETF will use the CME CF Ripple index, which gives real-time price data, to track the value of XRP. Canary Capital has decided not to use swaps to run the fund, which reduces the risks for investors when it comes to counterparty and credit risk.
Canary Capital thinks that this investment vehicle will give both individual and large investors the tools they need to use XRP in smart asset allocation methods instead of trading directly with the token. But Canary Capital hasn’t said anything about who is in charge of the ETF or what name it will use when it is listed.
This comes after Bitwise’s filing on October 2, which was the first of several attempts to make an XRP ETF. If either entry is accepted by the SEC, it will be the first one in the XRP fund that the agency has approved.
Even though things are looking up, there are still problems to solve. Ripple Labs is still being sued by the SEC, which says that XRP is an unregistered asset and that the company earned $1.3 billion through its sales. The result of this case could have a big effect on the process of approving the ETF.
As the world of cryptocurrency exchange-traded funds (ETFs) changes, both Canary Capital and Bitwise are getting ready to take advantage of investors’ growing desire for XRP-linked goods.
