Canary Capital Files for Spot XRP ETF

Crypto investment firm Canary Capital has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF), making it the second firm to seek this product this month.

The Canary XRP ETF will allow investors "the opportunity to access the market for XRP through a traditional brokerage account without the potential barriers to entry or risks involved with acquiring and holding XRP directly," according to the firm's S-1 registration statement submitted on Tuesday. A custodian or administrator for the ETF has not yet been named.

Founder Steven McClurg noted, "We're seeing encouraging signs of a more progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum—specifically investors seeking access to enterprise-grade blockchain solutions and their native tokens such as XRP."

McClurg previously founded Valkyrie Funds, which has other spot crypto ETFs.

Canary Capital's initiative follows Bitwise, which submitted its S-1 registration statement last week. Notably, a spot XRP ETF has not yet received SEC approval, and it may encounter challenges, especially considering the ongoing legal battle between the SEC and Ripple. The SEC has accused Ripple of raising $1.3 billion through the sale of XRP, which it deems an unregistered security.