Canary Capital Group, a newly established digital asset investment firm, submitted its application to the Securities and Exchange Commission (SEC) on Tuesday to launch the Canary XRP ETF. This filing follows Bitwise Asset Management Inc.’s recent application to create the first ETF tracking the XRP token.
Founded by Steven McClurg, a former co-founder of Valkyrie Funds, Canary expressed optimism about a “more progressive regulatory environment” and increasing investor demand. This move comes on the heels of earlier ETF launches for Bitcoin and Ether, which have collectively attracted nearly $19 billion and $550 million in outflows, respectively, as other firms like VanEck and 21Shares AG seek to introduce funds linked to Solana.
While the filing did not specify a ticker or anticipated fees, it marks Canary’s inaugural ETF endeavor. The interest in XRP ETFs reflects a broader push by issuers to broaden access to cryptocurrency investments for retail investors.
Stephane Ouellette, co-founder and CEO of FRNT Financial, commented on the situation, noting that ETF providers are closely monitoring regulatory developments for opportunities to introduce new products. The filings follow a recent federal ruling against Ripple Labs Inc., which was ordered to pay a civil penalty for unregistered sales of its XRP token to institutional investors.
Additionally, Grayscale Investments announced in September that it would offer the Grayscale XRP Trust, providing investors exposure to the token that underpins the XRP Ledger, designed for cross-border financial transactions.
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