Crypto investment firm Canary Capital has made a bold move by filing for a spot XRP ETF product in the United States. The firm named the product the Canary XRP ETF in the form S-1 registration statement lodged with the Securities and Exchange Commission (SEC).
Growing Positive Sentiment About XRP ETF
Bitwise made the first move for XRP ETF in the United States. That Canary Capital made similar filing at this time is a sign of growing confidence in what the future hold for XRP.
The firm said in its registration statement that is is seeing signs of a “progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum.”
Despite the positivity of Canary Capital, the question of progressive regulatory environment remains questionable. This is because the US SEC has filed a Notice of Appeal to contest the July 2023 Ripple lawsuit ruling that XRP is not a security when traded on secondary exchanges.
This appeal will further elongate the commission’s lawsuit against Ripple Labs, with XRP coming off as a collateral damage. With the securities status of the coin still in doubt, it remains unclear how the regulator will receive the two XRP ETF filings. Notably, the ETF product will track the price of the underlying cryptocurrency and is subject to the US SEC’s approval.
Canary Capital is the brainchild of Steven McClurg, the Founder of Valkyrie Funds. With enough experience in the crypto and financial markets, it is likely that the Canary Capital’s move might end up counting for something.
Uncertainties Around Crypto ETF Products
According to growing speculations, there is a likelihood that the SEC Appeal in the Ripple lawsuit will impact the chances of an XRP ETF.
With Bitcoin and Ethereum gaining the regulator’s approval for spot ETF products, investments firms have maintained positivity that other cryptocurrencies deserve related treatement. However, the US SEC has continued to crackdown on firms operating in the industry, naming some tokens alongside.
The lack of clarity on the status of most altcoins might deter the ETF approval for other top altcoins like Solana and Dogecoin. Though firms like Crypto Com is counter suing the SEC, many in the industry doubt other crypto ETFs can be under Gary Gensler’s SEC.
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