Investors are abuzz as the potential launch of the Canary XRP ETF edges closer. Following a recent regulatory filing, the fund is expected to begin trading this week, marking another major milestone for cryptocurrency exchange-traded funds (ETFs).
Breaking Down the Canary XRP ETF
Canary Capital, based in Nashville, Tennessee, has submitted an 8-A form to the U.S. Securities and Exchange Commission (SEC). This filing is a necessary step for registering securities and signals readiness for the ETF to list on the Nasdaq exchange. The fund would track the spot price of XRP, the fourth-largest cryptocurrency by market capitalization.
Bloomberg’s Senior ETF Analyst Eric Balchunas shared on social media, “Canary filed an 8-A for XRP ETF last night, which points to launch tomorrow or Thursday. Not a done deal, but all boxes being checked.” This new development raises expectations as the crypto community anticipates the fund to trade soon.
Second XRP ETF to Hit the Market
The upcoming Canary XRP ETF would serve as the second opportunity for U.S. investors to gain exposure to XRP through an ETF. The first was the Rex-Osprey XRP ETF (XRPR), which launched in September and surpassed expectations with $38 million in assets on its first day. XRPR now manages more than $138 million in assets and showcases the growing demand for cryptocurrency-focused ETFs.
Sumit Roy, Senior Analyst at ETF.com, noted, “The popularity of XRP, along with the success of other altcoin-focused funds such as Bitwise’s Solana ETF, demonstrates a strong appetite for diversified crypto exposure. Canary Capital’s XRP ETF has the potential to attract significant inflows, with over $100 million in the short term not being out of the question.”
Rising Demand for Crypto ETFs
Canary Capital’s move comes on the heels of the growing demand for cryptocurrency ETFs approved by the SEC. Bitcoin and Ethereum ETFs, which launched last year, currently manage $139 billion and $21 billion in assets, respectively. These successes, coupled with a more favorable regulatory environment in the U.S., have paved the way for innovations like the XRP ETF.
The SEC is now reviewing over 90 ETF proposals covering single cryptocurrencies, token combinations, and diversified investment strategies. With altcoins like Solana and XRP gaining popularity, investors are eager for new opportunities to diversify their portfolios.
Monitoring XRP Prices
At the time of this article, XRP stood at $2.40 per coin, according to CoinGecko. The cryptocurrency has lost 6% over the last 24 hours and remains 30% below its July all-time high of $3.65.
Looking Ahead
As altcoin ETFs continue to gain traction, the potential launch of the Canary XRP ETF signifies another step forward in mainstream adoption of cryptocurrency investments. For investors looking to keep up with the latest in crypto trends, products like Bitwise Cryptocurrency ETFs offer a viable option for diversifying portfolios while navigating the evolving market landscape.
