Canary Capital has entered the competition for a U.S. Ripple [XRP] ETF with the recent filing of an S-1 form with the SEC on October 8th. This move comes shortly after Bitwise submitted a similar application to the regulatory body.
Steven McClurg, a co-founder of Valkyrie Fund, is the brain behind Canary Capital, a newly established investment firm. The company’s decision to file for an ETF reflects its observation of a ‘forward-thinking regulatory’ landscape.
Explaining the motive behind the filing, a spokesperson for the firm mentioned, “We’re witnessing positive signals of a regulatory environment that embraces innovation, alongside a rising investor appetite for advanced exposure to cryptocurrencies beyond popular options like Bitcoin and Ethereum. Specifically, investors are demonstrating interest in accessing enterprise-level blockchain solutions and their associated tokens such as XRP.”
The new XRP ETF application has generated renewed optimism in the market for the altcoin.
Response to the Filing
Nate Geraci of ETF Store expressed his views on the filing, asserting that the approval of an XRP ETF is inevitable. However, he hinted that the timing might be influenced by the outcome of the U.S. elections.
Geraci remarked, “Another filing for an XRP ETF… In my opinion, approval is not a question of ‘if’ but rather ‘when.’ However, the timeline for approval could be significantly extended unless there is a change in leadership.”
Many market analysts shared this sentiment following Bitwise’s recent filing for a similar ETF last week.
Observers believe that the impending U.S. elections play a crucial role in shaping regulatory clarity, particularly concerning tokens like XRP and Solana [SOL].
The Ripple Labs-SEC Legal Dispute
The ongoing legal battle between Ripple Labs and the SEC poses a regulatory hurdle for the approval of an XRP ETF.
In a move on October 2nd, the SEC challenged a ruling that categorized the sale of XRP to institutional investors as a ‘security’ but exempted sales to the general public.
Ripple criticized the appeal as ‘illogical and misdirected,’ indicating that the SEC’s stance on XRP as a security could impede the ETF approval process.
Market experts believe that a change in the leadership of the SEC or the U.S. government could provide much-needed clarity on the regulatory status of various crypto assets.
Impact on XRP
Following the SEC’s recent appeal, XRP’s price plummeted from $0.6, leading to a bearish market trend after sliding below the 200-day Moving Average (MA).
Despite the latest developments in the XRP ETF realm, the cryptocurrency’s price remained stagnant under $0.54 in recent days.