The crypto investment company becomes the second asset manager to apply for an XRP ETF.
Canary Capital makes its entry into the XRP ETF market
Recently, Canary Capital filed an application for a Ripple-based ETF (XRP) with the SEC, following Bitwise's example. This development marks a significant step in the cryptocurrency investment landscape, as the ETF aims to track the value of XRP using the CME CF Ripple dollar reference rate. The SEC's decision could have major repercussions for the future of XRP and for investors.
The SEC approval process.
The SEC has a maximum of 240 days to decide on the application, which includes a 30-day comment period and a possible 45-day review. However, approval of the ETF could depend on the outcome of the SEC's ongoing lawsuit against Ripple regarding the classification of XRP. This legal environment adds an additional layer of uncertainty for investors and asset managers involved.
Implications for the cryptocurrency market
Canary Capital's entry into the race for the XRP ETF could spur more interest in the cryptocurrency market, especially if the SEC decides to approve the application. ETFs offer a more accessible way for traditional investors to enter the cryptocurrency market, potentially increasing market liquidity and stability. However, the issue of XRP classification remains crucial and could affect the final outcome of the application.
What are the future prospects?
The SEC's ETF decision could come by June 2025, but the ETF approval process is known for its complexity. The SEC has historically taken a cautious approach to cryptocurrency-related ETFs, and the Ripple case could further complicate matters. Investors should remain vigilant and informed about legal and regulatory developments that could affect the market.
Conclusions
Canary Capital's entry into the race for the XRP ETF represents a pivotal moment for the cryptocurrency sector. With uncertainty surrounding SEC approval and classification of XRP, investors must carefully consider the risks and opportunities. Staying up-to-date on industry news and analysis is critical to navigating this ever-changing environment.
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