As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by the latest development in the crypto space – Canary Capital’s filing for an XRP ETF. This is indeed a significant move, following close on the heels of Bitwise’s similar application. However, my cautious optimism is tempered by the ongoing legal battle between Ripple and the SEC.
The market for cryptocurrency Exchange Traded Funds (ETFs) is growing rapidly, and there’s been another filing for an XRP-based ETF, this time by Canary Capital. This follows in the footsteps of Bitwise’s initial filing. If approved, this new ETF could potentially influence the value of XRP.
Canary Capital Files New XRP ETF
On October 8th, Tuesday, Canary Capital made an official submission to the U.S. Securities and Exchange Commission (SEC) for a fund that tracks XRP, called an ETF. This action was taken shortly after Bitwise, another prominent asset management firm, filed for a similar ETF on September 30th. This marks the first-ever ETF in the crypto market that focuses on XRP.
As per Canary Capital’s recent submission, the objective of their Trust is to offer investors a direct link to the value of XRP. This way, they can easily invest in this cryptocurrency via a brokerage account. By doing so, Canary Capital aims to minimize the obstacles for market entry and lessen the risks associated with purchasing and holding XRP.
As a crypto investor, I’m keeping an eye on XRP‘s market performance, as Canary Capital intends to monitor it using their Pricing Benchmark. This benchmark will employ a strategy reminiscent of the real-time price from the Chicago Mercantile Exchange (CME) CF Ripple index.
While divulging the objectives and risk factors associated with an XRP ETF, Canary Capital failed to disclose the identity of the custodian for its potential XRP ETF. The investment management company also did not provide details on the ticker to be used for its XRP ETF, however, revealed that the Trustee for the investment product would be the Delaware Trust company.
While the filing for a new XRP ETF by Canary Capital has sparked excitement within the cryptocurrency community, it’s important to note that both this proposal and Bitwise’s are yet to receive approval from the Securities and Exchange Commission (SEC). Only after receiving such approval can they be launched in the market.
Currently, it seems unlikely that approval will come quickly for Ripple, given their ongoing legal dispute with the regulatory body. Earlier this month, the U.S. Securities and Exchange Commission filed a fresh appeal to contest the court’s decision from July 2023, which stated that XRP sales through programs are not classified as securities.
XRP Price Falls As Regulatory Uncertainty Clouds Optimism
Although Canary Capital recently submitted a proposal for an XRP-based ETF, the price of XRP has been steadily declining without any indications of breaking out from its bearish market trends. According to CoinMarketCap’s data, XRP experienced a decrease of 0.72% in the last day and an additional 0.79% drop over the past week.
For several weeks now, the value of this digital currency has been decreasing, but it occasionally rises when market conditions become extremely advantageous. With the introduction of the new XRP ETF, there’s a widespread belief that the price of XRP should surge, as excitement for the investment tool grows within the crypto community. Nevertheless, XRP remains stable around the $0.5 level, and in some cases, its 24-hour trading volume has even dropped.
As a researcher studying the cryptocurrency market, it’s evident that the bullish momentum of XRP has been significantly overshadowed by regulatory uncertainties and negative public opinion. Yet, within the XRP community, there remains an optimistic stance, with many believing that the value of XRP will soon surge upward.
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2024-10-10 23:10