Canary Capital has officially applied with the US Securities and Exchange Commission (SEC) to launch a spot XRP ETF (exchange-traded fund). If approved, this innovative financial product will provide investors with access to XRP without the need to purchase the asset directly.
The prospects for an XRP ETF continue to increase, especially as enthusiasm for a similar financial instrument for Solana wanes. According to the filing, the fund is designed to track XRP’s value using the CME CF Ripple dollar reference rate, which serves as a once-a-day benchmark index for Ripple. This rate aggregates trade data from various Ripple-USD markets operated by major cryptocurrency exchanges, all of which meet the stringent regulatory requirements of CF Benchmark.
Canary Capital’s proposed financial instrument aims to allow both institutional and retail investors to invest in XRP through traditional financial markets. This approach will simplify the challenges associated with custody, security, and regulatory compliance. The firm’s interest in an XRP ETF illustrates its recognition of potential opportunities within the cryptocurrency market beyond just Bitcoin and Ethereum.
