Leading investment management firm Canary Capitals has joined the race to launch an XRP exchange-traded fund (ETF) after Bitwise’s maiden application.
The investment firm filed an S-1 form with the US Securities and Exchange Commission on Tuesday, declaring its intention to launch an XRP ETF. Per the filing, Canary named the fund the Canary XRP ETF, offering investors alternative means of exposure to the seventh-largest crypto asset by market cap.
Canary stated in the filing with the SEC that the investment vehicle will bolster exposure to XRP, with the product’s net asset value (NAV) benchmarked with the CME CF Ripple-Dollar Reference Rate. Notably, Canary didn’t disclose details like the fund’s ticker, which exchange it would trade on, or the expected fee.
Canary Pushes for First ETF, Sponsored by Investor Demand for XRP
It bears mentioning that the XRP ETF was Canary’s first venture to provide clients with exposure to digital assets. The asset manager, headed by Valkyrie’s co-founder Steven McClurg, made its Wall Street debut in September.
McClurg noted in a statement that Canary’s delve into the launch of an XRP ETF was sponsored by incessant demand from investors. The founder cited a dent-up clamor among its clients for alternative exposure to cryptocurrencies aside from Bitcoin and Ethereum and the clearing regulatory dark cloud in the United States as reasons behind the latest venture.
The growing demand for XRP among US investors, despite an unclear clampdown from the SEC on Ripple, was evident when Bitwise filed for an investment product for the XRP Ledger native token. The leading asset manager, who already offers investors Bitcoin and Ethereum ETFs, filed an S-1 form with the SEC last week.
Meanwhile, the SEC vs. Ripple lawsuit drags on after the October 2 appeal notice from the securities watchdog. Ripple is yet to file a counter-appeal on the case, as the SEC has not detailed which part of the ruling it was contending. Notably, an analyst expects the Appeals Court to decide on the case late next year or early 2026.
XRP to New ATH?
The Tuesday filing has raised positive sentiments among the XRP community, with proponents expecting a bullish scenario for the coin. According to market researcher Collin Brown, XRP could soon target a new all-time high.
The analyst argued that the XRPL native token will surge past its record high of $3.84 when the SEC approves the XRP ETFs applications. However, proponents will hope the years-long legal tussle between the regulator and Ripple will not influence its decision on the filings.
Meanwhile, XRP was trading at $0.5328, up less than 1% in the past 24 hours. The asset is down 86.12% from its all-time high.
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