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The crypto ETF market is expanding at an alarming rate, with news coming in a second XRP Exchange Traded Fund (ETF) file spreads across space. Canary Capital, a boutique investment and business advisory firm in Sydney, has just filed an XRP ETF, following the lead of Bitwise. With the new ETF application, the price of XRP could see a possible change in the future.
Canary Capital Files New XRP ETF
On Tuesday October 8, Canary Islands submitted an official S-1 filing for an XRP ETF with the U.S. Securities and Exchange Commission (SEC). This filing comes right after Bitwiseanother leading asset manager filed for an ETF on September 30 very first XRP–based ETF on the crypto market.
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According to Canary Capital’s new applicationThe investment objective of the Trust is to provide direct exposure to the value of XRP, allowing investors to access the market of this cryptocurrency through a brokerage account. Through this method, Canary Capital aims to limit the potential barriers to market entry and reduce the risks associated with acquiring and holding XRP.
Canary Capital has also stated that it aims to… performance of XRP on the marketas measured by the Trust’s price benchmark. This price benchmark will use a similar methodology to the real-time price of the Chicago Mercantile Exchange (CME) CF Ripple index.
While the objectives and risk factors associated with a XRP ETFCanary Capital has not disclosed the identity of the custodian of its potential XRP ETF. The investment management company also did not provide details on the ticker to be used for its XRP ETF, but revealed that the trustee for the investment product is the Delaware Trust Company.
Despite the optimism Canary Capital’s new
Currently, the chance of a quick approval seems slim Ripple’s ongoing legal proceedings fight with the supervisor. Earlier this month, the US SEC issued a new profession to challenge the court’s July 2023 ruling that programmatic sales of XRP are not considered securities.
XRP Price Drops as Regulatory Uncertainty Clouds Optimism
Despite Canary Capital’s new XRP ETF filing, the price of XRP is in a downtrendand shows no signs of abandoning bearish momentum trends. CoinMarketCap data shows that XRP is down 0.72% in the last 24 hours and another 0.79% in the past week.
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The cryptocurrency is in the red only slight gains in recent weeks as market conditions became significantly more favorable. With the new XRP ETF, many would expect the XRP price risesas anticipation for the investment product increases in the crypto space. However, XRP is still consolidating around $0.5 and is even experiencing a decline in 24-hour trading volume.
Clearly, XRP’s bullish momentum has been completely eclipsed regulatory uncertainty and negative sentiment. Despite this, many in the XRP community continue to do so retain positive outlook, expecting the price of XRP to soar upwards soon.
Featured image created with Dall.E, chart from Tradingview.com
