Bitcoin {{BTC}} has risen 2.8% over 24 hours, trading above $66,500, and ether {{ETH}} has advanced to $3,240, according to CoinDesk Indices data, as multiple issuers in Hong Kong said they'd been approved for spot crypto exchange-traded funds (ETFs).

China Asset Management, Bosera Capital and other applicants posted to social-media platform WeChat (Weixin) that they had been approved to list spot bitcoin and ether ETFs in Hong Kong. However, these announcements seem to have front-run an official statement from the Securities and Futures Commission (SFC), which has not posted a list of approved issuers. Some of the posts have since been deleted.

The SFC did not return emails or phone calls asking for comment.

Singapore-based digital assets trading house QCP Capital said in a message shared with CoinDesk that it believes the ETFs, when approved, will unlock some institutional demand during Asia trading hours.

"Participants who wanted exposure have always been limited to US hours, but this now gives institutional investors an Asia-based alternative," QCP wrote. "We believe this will be bullish short term, but there are more important narratives and drivers such as macro events."

Canary Capital has filed for permission to offer an exchange-traded fund (ETF) linked to Ripple-associated cryptocurrency XRP. This is the second such registration in the United States, just a week after Bitwise filed for a similar product.

Canary Capital Files First Form S-1 For XRP ETF With SEC

Crypto investment company Canary Capital took a big step toward launching an exchange-traded fund tied to XRP.

On Tuesday, the firm submitted an S-1 form to the U.S. Securities and Exchange Commission, a key requirement for companies looking to issue a new security and be listed on a public stock exchange.

Operated by Canary Capital Group, the fund will track the price of XRP via the CME CF Ripple. If approved, the ETF would give 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,” the filing reads. 

XRP currently occupies the seventh spot on the crypto leaderboard, according to CoinGecko data. Its larger rivals, Bitcoin (BTC) and Ether (ETH) have since earlier this year both been available to investors as ETFs, amassing billions in inflows. 

The Canary Capital XRP ETF bid also comes after a federal judge in August directed Ripple Labs to pay $125 million to the SEC for selling its unregistered institutional sales of the XRP token.

“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,” Canary Capital’s founder Steven McClurg postulated in a statement.

The company’s application follows a similar move by Bitwise, which filed to debut its own spot XRP ETF roughly a week ago. Bitwise’s filing, like Canary’s, marks a notable push in bringing XRP into legacy financial markets through regulated ETF products. 

Uncertainty Around XRP ETFs

The SEC has not approved a spot XRP ETF before, and if it does, it could face significant hurdles. Ripple has been mired in a multi-year-long legal brawl with the Securities and Exchange Commission after the regulator accused the San Francisco company of raising $1.3 billion via the sale of XRP, which it considers an unregistered security.

The SEC recently challenged a court ruling in its case against Ripple regarding XRP’s classification. This move has hindered progress toward a spot XRP product, with the lack of regulatory clarity likely delaying a potential greenlight until 2025 or even later.

While crypto companies like Crypto.com are counter-suing the SEC, most crypto spectators doubt other crypto ETFs could see the light of day under Gary Gensler’s leadership.

According to Odaily, the South Korean Financial Services Commission (FSC) is planning to establish a Virtual Asset Committee to discuss the approval of spot ETFs and the allowance of corporate virtual accounts. Previously, the FSC had prohibited the trading of Bitcoin and other virtual asset ETFs due to the lack of underlying assets and had banned companies from opening virtual asset accounts due to money laundering risks. The committee will be led by the Vice Chairman of the FSC and will include officials from the finance, economy, legal, and technology departments, as well as private sector representatives. Additionally, the FSC is monitoring market anomalies to protect investor rights and is considering further regulatory improvements. CryptoQuant CEO Ki Young Ju noted that if these plans are approved, it would be beneficial as the entry of arbitrage funds and market makers into the South Korean market would mitigate the kimchi premium effect.

According to Odaily, Bloomberg ETF analyst James Seyffart has indicated that Bitcoin spot ETF options might be introduced in the United States by the first quarter of 2025. Speaking at the Permissionless conference on October 9, Seyffart stated, 'I think there is a possibility of launching (Bitcoin spot ETF) options by the end of this year, but it is more likely to happen in the first quarter of 2025.' In September of this year, the U.S. Securities and Exchange Commission (SEC) authorized options related to BlackRock's IBIT to be listed on Nasdaq. These options are currently awaiting final approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). Seyffart noted, 'Unlike the SEC's regulations, the CFTC and OCC do not have strict deadlines, so they can delay further if they choose to.'

According to BlockBeats, on October 10, monitoring by Trader T revealed that the net inflow and outflow for the U.S. spot Ethereum ETF was zero on the previous day.

According to Odaily, recent data monitored by Lookonchain on October 9 reveals notable outflows from U.S. Ethereum and Bitcoin ETFs. The data indicates that nine U.S. Ethereum ETFs experienced a total net outflow of 3,422 ETH, approximately valued at $8.32 million. Among these, Bitwise saw an outflow of 1,865 ETH, roughly equivalent to $4.53 million. Currently, Bitwise holds 98,288 ETH, valued at approximately $238.84 million.

In addition, ten U.S. Bitcoin ETFs recorded a total net outflow of 105 BTC, approximately worth $6.5 million. Notably, Fidelity experienced an outflow of 787 BTC, around $48.55 million. As of now, Fidelity holds 178,778 BTC, valued at approximately $11.03 billion.

The post Ripple News: Will the U.S. Approve an XRP ETF? Experts Weigh In Amid Legal Turmoil appeared first on Coinpedia Fintech News

The prospect of an XRP ETF in the U.S. is gaining traction, fueled by optimism from experts and the recent filing by Canary Capital. Despite the U.S. SEC’s ongoing appeal in the Ripple case, confidence in XRP’s future remains strong among market players.

Here’s the inside scoop on the biggest speculation of the year!

NEW: Canary Capital has officially filed an S-1 with the @SECGov for an $XRP ETF. Canary is a new #crypto investment firm launched by @ValkyrieFunds founder @stevenmcclurg. “We're seeing encouraging signs of a more progressive regulatory environment coupled with growing… pic.twitter.com/GbLWQy5p7q

— Eleanor Terrett (@EleanorTerrett) October 8, 2024

Growing Confidence After Recent Filings

Canary Capital’s recent filing marks the second attempt to launch an XRP ETF, following Bitwise’s initial filing earlier this month. This surge in filings signals increased confidence among Wall Street players regarding Ripple’s native cryptocurrency. ETF Store President Nate Geraci expressed a hopeful outlook, suggesting that approval is likely, depending on shifts in the political landscape. Geraci stated, “Approval is a matter of when, not if,” emphasizing that a change in U.S. presidential or SEC administration could be pivotal for crypto advancement.

Industry Sentiment Amid SEC Controversy

Criticism of SEC Chair Gary Gensler has intensified within the crypto community, with many viewing regulatory actions as overreaching. However, Geraci and others believe a shift in administration could open doors for an XRP ETF. Meanwhile, former President Donald Trump’s renewed focus on crypto has garnered attention, with some investors hoping for his potential return to office to stimulate innovation in the digital asset space.

Mixed Reactions to Legal Developments

The recent SEC appeal in the Ripple case has dampened some investor sentiment, leading to concerns that the legal battle may drag on. Ripple CLO Stuart Alderoty hinted at a possible cross-appeal, adding to market uncertainties. Nevertheless, prominent figures like pro-XRP lawyer Bill Morgan and Ripple CEO Brad Garlinghouse maintain a bullish stance, with Garlinghouse stating, “It’s happening again” in relation to ETF developments.

Also Read :

  Ripple Vs SEC Appeal News: Legal Expert Says Ripple Should Cross-appeal; But Can They Win?

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Market Outlook for XRP

Currently, XRP is trading around $0.5301, up nearly 1%, with trading volume down 25% at $863.39 million. Despite experiencing fluctuations, including a brief spike above $0.66, investor sentiment remains cautious due to ongoing legal proceedings. Notably, market analysts project a potential XRP price rally to $3 by Christmas, fueling optimism despite the SEC’s latest actions.

As the situation unfolds, many in the XRP community remain hopeful for a favorable outcome in both the legal battles and the potential approval of an XRP ETF in the U.S.

According to Odaily, Mechanism Capital co-founder Andrew Kang recently commented on the X platform about the current state of Ethereum (ETH) leverage. Kang noted that the ETH leverage ratio has returned to levels seen during the ETF hype period. He questioned whether there is a solid reason to explain this phenomenon as being driven by non-directional long positions. Kang warned that if this is not the case, it could put pressure on ETH.

TLDR

Speculation about a potential Shiba Inu ETF has caused recent price increases

If approved, a SHIB ETF could potentially cause massive price growth, possibly up to 2400%

Current SHIB price is breaking out of a bearish trend, signaling potential for further gains

Analysts predict SHIB could reach $0.05 sometime between 2035-2050

A new burn mechanism may accelerate SHIB’s path to higher price targets

The cryptocurrency Shiba Inu (SHIB) has recently seen increased attention and price movement due to speculation about a potential SHIB exchange-traded fund (ETF).

This meme-inspired token, which has surprised many with its past performance, is once again capturing investor interest as the crypto market considers the possibility of a SHIB ETF approval.

Recent data shows that SHIB’s price has gained approximately 33.5% over the last 30 days. This uptick comes as discussions about a possible Shiba Inu ETF circulate within the crypto community.

The token has broken out of a bearish trend pattern, suggesting potential for further price increases.

If a Shiba Inu ETF were to be approved, some analysts predict it could lead to significant price growth.

By using the performance of existing Bitcoin and Ethereum ETFs as a benchmark, predictions suggest that SHIB’s market capitalization could potentially swell by $250 billion.

This increase would be based on applying the Bank of America multiplier of 1:10 to estimated ETF inflows.

Under this scenario, SHIB’s total market cap could reach around $260.3 billion, which would position it just below Ethereum in cryptocurrency rankings.

Shiba Inu Price on CoinGecko

At this market cap, and assuming no additional token burns, the price of SHIB could potentially reach $0.0004414. This would represent a 2400% increase from current price levels.

However, it’s important to note that these projections are speculative and based on hypothetical scenarios. The actual performance of any potential SHIB ETF would depend on various factors, including market conditions, investor sentiment, and regulatory considerations.

Looking at longer-term price predictions, analysts have varying viewpoints on SHIB’s future. Some projections suggest that SHIB could reach the $0.05 mark sometime after 2050. Others are more optimistic, anticipating this milestone between 2035 and 2040.

These long-term forecasts should be viewed with caution, as the cryptocurrency market is known for its volatility and unpredictability. Many factors could influence SHIB’s price trajectory over such an extended period.

One potential catalyst for faster price growth is the development of a new token burn mechanism. The Shiba Inu team is reportedly working on a system that could burn trillions of tokens annually.

If implemented successfully, this could significantly reduce the token supply, potentially accelerating price appreciation.

In the near term, technical analysis suggests that SHIB is breaking out of a descending price channel. This could signal a reversal from the recent bearish trend.

Based on this pattern, some analysts project that SHIB could potentially reach the $0.00002200-0.00002300 range, which would represent a 125% increase from current levels.

The post Shiba Inu’s Price Puzzle: Could an ETF Spark a 2400% Surge?” appeared first on Blockonomi.

According to Odaily, on-chain analysis firm Glassnode has disclosed data indicating a robust demand for regulated Bitcoin exposure among institutions. The total market value of assets under management for U.S. spot ETFs now stands at $58 billion, representing approximately 4.6% of the circulating Bitcoin supply. BlackRock, Fidelity, and Grayscale are the largest spot Bitcoin ETFs in the United States. If the Bitcoin held in these ETFs is marked to estimate their average acquisition cost, the cost basis for these ETFs ranges between $54,900 and $59,100.

Shiba Inu (SHIB), one of the most popular meme coins, has already made waves in the crypto world. With its passionate community and continued developments, SHIB has seen tremendous growth since its inception. But how much higher could SHIB’s price go if a Shiba Inu ETF is approved?
The ETF Impact
If a Shiba Inu ETF (Exchange Traded Fund) gets the green light, it could open the floodgates for institutional investors who have so far stayed on the sidelines. ETFs make it easier for investors to gain exposure to an asset without directly holding it, and this could significantly increase demand for SHIB. As seen with #Bitcoin (BTC) and Ethereum (ETH), ETF approval usually brings positive momentum to the price. In SHIB’s case, such a move could bring millions, if not billions, in new investment.
Shiba Inu's Ecosystem Growth
SHIB is more than just a meme coin; it has a developing ecosystem that includes Shibarium, a layer-2 scaling solution aimed at improving transaction efficiency and lowering costs on the Ethereum network. Moreover, the community has launched initiatives like ShibaSwap (a decentralized exchange) and #SHIB : The Metaverse, which adds utility and# long-term value to the token.
Potential Price Predictions
While it's impossible to guarantee exact price outcomes, some analysts speculate that an ETF approval could see SHIB’s price rise by 50% or even double in a short span, depending on overall market sentiment. With its current price fluctuating in micro fractions of a dollar, even small increases can have large percentage impacts, potentially pushing SHIB to new highs.
Caution and Timing
It's important to note that while #ETF approval could serve as a catalyst for growth, market conditions will still play a significant role. Factors such as macroeconomic conditions, regulatory policies, and competition from other meme coins and established cryptocurrencies like #btc and #eth will shape SHIB’s trajectory.
In the end, while a #ShibaInu ETF approval could be a massive win for #SHIB holders, it’s essential to keep expectations realistic and monitor the broader crypto landscape. Keep an eye on developments as 2024 progresses!

N.B : "The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

#bitcoin #SHIB، #BinanceLaunchpoolSCR $BTC $SHIB

According to Foresight News, cryptocurrency investment firm Canary Capital has filed an application with the U.S. Securities and Exchange Commission (SEC) for the registration of an XRP spot exchange-traded fund (ETF) named 'Canary XRP ETF'.

TLDR

Bitcoin ETFs saw a $235.2 million inflow on October 8

Fidelity’s FBTC led with $103.7 million, followed by BlackRock’s IBIT with $97.9 million

Combined trading volume of all Bitcoin ETFs grew to over $1.22 billion

Ethereum ETFs experienced low inflows of $7.4 million on October 6 and no activity on October 7

Analysts suggest the inflows reflect market trends tied to potential Federal Reserve rate cuts

Bitcoin exchange-traded funds (ETFs) have experienced a significant increase in inflows, reaching $235.2 million on October 8, 2024.

This surge in investment comes after a quiet start to the month and suggests renewed investor confidence in the cryptocurrency market.

Fidelity’s Bitcoin ETF (FBTC) led the way with an inflow of $103.7 million, closely followed by BlackRock’s iShares Bitcoin Trust (IBIT) with $97.9 million.

Other funds also saw notable inflows, including Bitwise ETF BITB with $13.1 million and ARK Invest ETF Arkb with $12.6 million.

The combined trading volume of all Bitcoin ETFs has grown steadily, reaching over $1.22 billion. This increase is particularly noteworthy given the recent fluctuations in Bitcoin’s price.

Bitcoin ETF Flow

At the time of writing, Bitcoin was trading at approximately $62,485, showing a slight decline from its recent high of $66,000.

Despite this price dip, the strong demand for Bitcoin ETFs indicates that institutional investors remain optimistic about potential future gains.

Bloomberg analyst Eric Balchunas suggests that both FBTC and IBIT could reach “stud level” with over $10 billion in assets under management by the end of 2024.

In contrast to the positive sentiment surrounding Bitcoin ETFs, Ethereum ETFs have experienced less activity.

On October 6, Ethereum ETFs saw low inflows of just $7.4 million, followed by no new activity on October 7. This stagnation stands in stark contrast to the active movement within Bitcoin ETFs.

Analysts point out that this difference could indicate shifting investor preferences or concerns about Ethereum’s market dynamics.

The lack of inflows into Ethereum ETFs raises questions about the overall market sentiment toward altcoins. While Bitcoin continues to attract significant institutional capital, investor interest in Ethereum appears to have waned somewhat.

The recent increase in Bitcoin ETF inflows may reflect broader market trends, influenced by speculation about potential Federal Reserve rate cuts.

Many investors believe that such monetary easing could strengthen the market and support continued price appreciation. Historically, financial easing has often encouraged increased investment in risk assets, including cryptocurrencies.

Investors and market observers will be closely watching how these trends develop in the coming weeks and months.

The performance of both Bitcoin and Ethereum ETFs could provide valuable insights into institutional sentiment and the overall direction of the cryptocurrency market.

As the fourth quarter of 2024 progresses, the rising institutional interest in Bitcoin ETFs may contribute to increased market activity.

However, it remains to be seen whether this will translate into a sustained bull run or if other factors will come into play.

The post Bitcoin ETFs Soar: Is This the Start of a New Crypto Bull Run? appeared first on Blockonomi.

The cryptocurrency world is abuzz with excitement as Canary Capital Group recently filed for an Exchange-Traded Fund (ETF) focusing on…

For the full story, head over to TheCurrencyAnalytics.com.

According to recent filings, crypto-focused investment firm Canary Capital has submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for a spot XRP ETF. This move has sparked speculation about the imminent approval of an XRP ETF, with experts weighing in on its potential impact on the market. Nate Geraci, CEO of ETF Store, believes that "it's not a matter of if, but when" an XRP ETF will be approved. He attributes any potential delays to a possible change in administration. Geraci's comments underscore the growing anticipation within the industry for an XRP ETF, which could provide investors with a regulated and accessible way to gain exposure to the cryptocurrency. The development comes amidst ongoing regulatory scrutiny of the crypto market. The SEC has yet to approve a spot Bitcoin ETF, despite several applications. However, the filing for an XRP ETF suggests that regulators may be taking a more nuanced approach to approving cryptocurrency ETFs. If approved, an XRP ETF could offer several benefits to investors. It would provide a convenient and secure way to invest in XRP, eliminating the need for direct ownership and storage of the cryptocurrency. Additionally, an ETF would allow investors to diversify their portfolios by adding exposure to the crypto market.

According to data from financial information platform Farside Investors, there was no fund movement (net inflow/outflow) in US Ethereum (ETH) spot ETFs (excluding Bitwise ETHW) on October 9 (local time). This is only the third time that has happened since September 2 and October 7. This lack of movement suggests that investors are still hesitant to invest in ETH spot ETFs, despite the recent rally in the price of ETH. It is possible that investors are waiting for more regulatory clarity before they commit to investing in these products.

According to Bloomberg Intelligence analyst James Seyffart, options on Bitcoin exchange-traded funds (ETFs) are likely to be available in the United States by the first quarter of 2025. The US Securities and Exchange Commission (SEC) has already authorized Nasdaq to list options tied to BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), with final approvals pending from the Commodity Futures Trading Commission (CFTC) and Options Clearing Corporation (OCC). This move is seen as a significant development in the cryptocurrency market, offering new opportunities for investors. Financial advisers, who play a key role in the ETF market, are expected to utilize options to manage risks effectively. Overall, the introduction of BTC options on regulated US exchanges is anticipated to enhance market stability and provide a safer environment for investors. Read more AI-generated news on: https://app.chaingpt.org/news

Spot Ethereum ETFs track the actual price of Ethereum but are yet to be approved in major markets like the U.S.

Futures-based ETFs speculate on future Ethereum prices but carry complexities such as contract rollovers, adding additional risks.

Combined Ethereum and Bitcoin ETFs diversify risk, offering exposure to both leading cryptocurrencies in one product.

The Ethereum ETFs keep on making headlines lately as they gain more traction for the provision of access to the price of Ethereum without holding the digital asset outright. Some of those funds offer leveraged opportunities on price movements, track futures contracts, or give diversified exposure by holding both Ethereum and Bitcoin. Let's review some of the other various types of Ethereum ETFs and their investment strategies.

Spot Ethereum ETFs

The spot Ethereum ETFs hold the real tokens of Ethereum; hence, the price directly follows the market price of Ethereum. It helps investors to track the movement in prices of Ethereum without being required to buy and store it themselves. Even after high demand for these ETFs, they have not been approved on major markets such as the United States; hence, these types of ETFs are scarce.

Ethereum futures ETFs

The Ethereum ETFs that are based on futures make the investor uncover Ethereum by tracking the price of the futures contract and not the asset itself. This means that the investor is going to wonder about the prices in the future, and the production of the ETF will depend on such contracts. While this indeed provides a way to bet on the future movements in Ethereum's price, the futures-based ETFs introduce complexities such as contract rollovers that make them riskier for unsophisticated investors.

Ethereum and Bitcoin Combined ETFs

Some of the ETFs even combine both exposures to Ethereum and Bitcoin for risk diversification. Such diversified funds present investors with an avenue of exposure to the two largest cryptocurrencies in one product. Holding both assets, these ETFs reduce individual price volatility and offer a balanced approach for those looking to invest in digital assets.

Leveraged Ethereum ETFs

The leveraged Ethereum ETFs amplify the daily price movements to provide returns that are typically two or three times the performance of Ethereum. However, such funds come with huge risks as losses are multiplied in highly volatile markets. These products are exclusively for short-term traders who have an immense tolerance for risk and huge understanding of market movements.

Inverse Ethereum ETFs

Inverse Ethereum ETFs are designed to move opposite to the market, thereby profiting when the Ethereum price declines. These funds are apt for investors looking to hedge their exposures in Ethereum or wanting to take a bet against future performance. The inverse ETFs provide one strategic option available to investors if they expect a downside in Ethereum's price.

The post Best Ethereum ETFs to Buy in October for Diversified Crypto Exposure appeared first on Crypto News Land.

The Bitcoin ETFs have recently seen a huge inflow worth 207 million dollars indicating the growing interest and confidence of investors. On the other hand, the Ethereum market is going through a totally opposite situation. ETFs have recorded outflows of $9.69 million – indicating a shift in investor sentiment away from Ethereum. 

Oct 8 Update:10 #Bitcoin ETFsNetFlow: +3,281 $BTC(+$204.7M)#Fidelity inflows 1,639 $BTC($102.26M) and currently holds 179,565 $BTC($11.2B).9 #Ethereum ETFsNetFlow: -3,968 $ETH(-$9.69M)#Grayscale(ETHE) outflows 3,711 $ETH($9.06M) and currently holds 1,640,928… pic.twitter.com/bdzDiL6xA9

— Lookonchain (@lookonchain) October 8, 2024

Here’s a little sneak peek into the current market condition:

Bitcoin ETFs

Total Net Flow

The 10 Bitcoin ETFs together have had a net inflow of 3,281 BTC which makes up a total of $204.7 million. This means that more Bitcoin was put into these ETFs than removed within the examined period.

Significant Inflow – Fidelity:

Fidelity-wise origin bitcoin fund (FBTC) saw a huge inflow for the period amounting to 1639 ‘BTC’ valued at 102.26 million USD.

The fund has now expanded its investment portfolio to an impressive 179,565 BTC or an equivalent of $11.2 billion. This points to the great size of the fund and at the same time a relatively high recent growth of assets in bitcoin.

Ethereum ETFs

Total Net Flow:

9 Ethereum ETFs on an aggregate basis had a net outflow of 3968 ETH resulting in a decrease worth 9.69 million dollars approximately. This means that more Ethereum was registered out of these ETFs during the follow-up period.

Significant Outflow: Grayscale:

Glancing at the Grayscale Ethereum Trust (ETHE), the net outflow because of sales reached 3711 ETH worth about 9.06 million USD. Even with the outflow, the Grayscale Ethereum Trust still has a significant quantity of Ethereum, approximately $4 billion worth 1,640,928 ETH in total.

Broader Implications

Market Sentiment and Investor Behavior

The boundaries of the cryptocurrency market are clearly demonstrated by the different inflows and outflows suffered by Bitcoin and Ethereum. The behavior of investors can be determined by  many factors including: 

News and Developments: 

Positive developments tend to attract inflows, while negative news may cause outflows.

Risk Appetite:

The level of risk an investor is prepared to play with can change because of prevailing market conditions and personal financial obligations.

Market Trends

Current trends and their prevailing sentiments across the overall financial markets also affect the extent of their influence.

Conclusion

The inflows in the Bitcoin ETFs and the outflows in the Ethereum ETF in management reflect the perception among the current investors in the cryptocurrency market and their behavior. These tendencies need to be evaluated and understood in the context of the aforementioned understandings and perspectives.

Canary Capital, founded by alternative asset manager Valkyrie, has joined the XRP ETF race by filing its own application, as was recently revealed.

As a reminder, earlier this month, Bitwise, a major fund manager with active Bitcoin and Ethereum ETFs, caused a stir by announcing a filing for the first ever XRP ETF. This came just before Ripple, a company which leverages XRP in its operations, received an appeal from the SEC.

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Nate Geraci, president of ETF Store, which provides advisory and management services for these financial instruments, does not doubt that XRP will one day get its own ETF. 

According to Geraci, the approval of an XRP ETF is a matter of "when," not "if." On the other hand, he emphasizes that this "when" will be much further in the future unless there is a change in administration, meaning, the U.S. presidency. 

Another XRP ETF filing…Approval a matter of when, not if IMO.But that “when” will be *much* further out in the future unless there’s a change in administration. https://t.co/jMW4NUjhBH

— Nate Geraci (@NateGeraci) October 8, 2024

Is XRP really next up?

The motivation behind Canary Capital's filing to create an XRP ETF is to capitalize on the growing demand for alternative cryptocurrencies with a new investment product. Some signs of a more favorable regulatory environment also give the company confidence. 

It should be noted that XRP is currently the seventh largest cryptocurrency by capitalization and is actually one of the few digital assets whose nonsecurity status has been recognized by the courts.

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On the other hand, the SEC has not yet announced what exactly it intends to appeal. Thus, XRP's status and transactions are still being questioned, although the cryptocurrency is now in a position of strength thanks to previous rulings. 

Nevertheless, the legal battle is likely to drag on for another two years or so, complicating the approval process. 

Canary Capital seeks SEC approval for XRP ETF, offering an alternative to direct XRP.

The ETF will track XRP’s value using the CME CF Ripple-Dollar Reference Rate benchmark.

Canary Capital’s XRP ETF targets traditional brokerage accounts, simplifying access to XRP.

Canary Capital Group LLC has submitted a registration with the U.S. Securities and Exchange Commission (SEC). The company is seeking approval for an exchange-traded fund (ETF) focused on XRP. This new product is designed to make it easier for investors to access XRP through traditional brokerage platforms. Instead of holding XRP directly, investors can gain exposure via the ETF. This approach provides an alternative for those interested in cryptocurrencies like XRP.

The Canary XRP ETF will track the value of XRP, the digital asset used on the XRP Ledger. The filing with the SEC reveals that the ETF will use the CME CF Ripple-Dollar Reference Rate – New York Variant. This benchmark aggregates data from major XRP trading platforms to reflect the current price. The goal of the ETF is to give investors exposure to XRP’s price movements. At the same time, it will manage operational costs and risks.

Unlike mutual funds or registered investment companies, the ETF will not operate under the Investment Company Act of 1940. Instead, it will function as a digital asset trust. This means that shares can be created and redeemed in baskets to ensure liquidity.

Addressing Market Risks 

Canary Capital has acknowledged the risks tied to digital assets like XRP. The filing points out the volatility of the XRP market and regulatory uncertainty in the crypto space. Despite these challenges, Canary Capital aims to make XRP more accessible to investors who prefer not to manage the asset directly.

This ETF filing follows a similar move by Bitwise, which also applied for an XRP-focused ETF. The interest in such funds reflects a growing trend among firms seeking to provide broader access to digital assets. However, whether the SEC will approve the Canary XRP ETF remains uncertain due to ongoing regulatory scrutiny.

Targeting Traditional Brokerage Accounts

Canary Capital’s ETF aims to reach investors who use traditional brokerage accounts. The trust will not act as an investment adviser or directly hold XRP. Instead, liquidity will be managed by authorized financial participants. This approach ensures shares are available for purchase and redemption.

The action of Canary Capital could make more products based on cryptocurrencies to be more accessible. The ETF aims to serve investors who want exposure to XRP and blockchain solution investments. Nevertheless, the outcome of the SEC’s ruling will determine whether the ETF advances in light of the legal shifts since the commodity’s status is not well settled.

The post Canary Capital Files For XRP Focused ETF With the SEC appeared first on CryptoTale.