Next Ripple ETF application: Canary Capital wants to launch XRP fund

After Bitwise, the next investment firm has now applied for an XRP index fund. Who will win the race for the first Ripple ETF?

Just a week after Bitwise's first Ripple ETF application, the next crypto investment firm is in the running for an XRP index fund. Last Tuesday afternoon, Canary Capital filed with the U.S. Securities and Exchange Commission (SEC) submit an application for the launch of such a financial product. Canary is an established Australian asset manager, headquartered in Sydney.

If the XRP ETF is approved, the company plans to offer customers access to the XRP token without having to buy the crypto-asset itself. According to Canary, the listed XRP fund will track the price of the token based on the Chicago Mercantile Exchange's (CME) CF-Ripple Index, a daily benchmark price for Ripple's token.

The goal of the investment company is to simplify the technical aspects of the secure storage of XRP, on the one hand, and to provide both retail and institutional investors with access through traditional financial markets, on the other. "We see encouraging signs for more sophisticated regulation, combined with growing investor demand for access to other cryptocurrencies besides Bitcoin and Ethereum," the company said.

XRP remains stagnant: Why the Ripple token is still not rising

Despite the good news, long-term investors in XRP are likely to be disappointed. Although many crypto-enthusiasts have long hoped for a Ripple ETF, the token has only minimally responded to the second official ETF application. At the time of writing, the XRP price stands at US$0.529, down 9.68 percent from a week ago. To regain the annual high of 0.718 US dollars, achieved in March, would require a price increase of about 35 percent.

FoxBusiness journalist Eleanor Terret expressed doubts about the approval of a Ripple ETF in a new X-post. She explains: "To have an XRP-Spot-ETF, there must first be a Futures-ETF. Part of the approval of BTC-Spot-ETFs was the SEC's decision that the CME's Bitcoin Futures market was sufficient to control fraud and manipulation."

On the regulatory front, however, Ripple Labs faces another danger that seemed to have been overcome earlier. As we previously reported, the SEC recently appealed against Judge Torres' ruling in the Ripple case. Just a few weeks ago, Ripple's company executives enthusiastically celebrated the relatively low fine in the legal dispute with the regulator as a major victory for the entire crypto sector.

Ripple CEO Garlinghouse showed resolve: "We will continue to fight in court for as long as necessary, but one thing is clear: the status of XRP as a non-security is valid law today - and that will not change despite this misguided and outrageous appeal." Despite his optimism and the two recent Spot ETF applications, a quick approval of a Ripple index fund is considered unlikely.