Canary Capital files application with SEC for XRP-ETF

ETF issuer Canary Capital has filed an application with the U.S. Securities and Exchange Commission (SEC) to create an exchange-traded product based on Ripple's XRP token. This is the second application for an XRP-based fund in the past two weeks.

Canary Capital stated that its new product will track the price of XRP using the CF Ripple Index from the Chicago Mercantile Exchange (CME), ensuring an accurate reflection of the asset's market value.

XRP trust fund by Grayscale

In September, the company announced the creation of a dedicated XRP trust fund. This fund will track the token’s price and could serve as a precursor to converting it into a spot ETF on XRP, as has already been done with BTC and ETH-based funds.

Ripple CEO’s expectations regarding an ETF

Ripple CEO Brad Garlinghouse expressed confidence that, despite the ongoing lawsuit with the SEC, an XRP-based exchange-traded fund is inevitable. This underscores the company’s optimism about XRP's future in regulated markets.

Price dynamics

Despite news of potential ETFs, XRP showed no significant reaction in the spot markets. At the time of writing, the asset's price remained stable at $0.532. However, over the past week, Ripple’s token, designed for cross-border transactions, has dropped in value by 11%.