Canary Capital Files XRP ETF, Institutional Interest In Ripple Increases
JAKARTA - Crypto assets XRP seem to attract the attention of financial institutions considering the role of the coin plays a major role in processing fast fiat shipments. This time, the investment company Canary Capital submitted a proposal to present XRP exchange-traded funds (ETF) to the Securities and Exchange Commission (SEC) on October 8.
A week earlier, crypto investment firm Bitwise first submitted the XRP ETF proposal to US regulators. The ETF is designed to provide investors with access to the XRP market through traditional broker accounts without having to buy or store XRP directly, which is considered to have a higher risk.
For your information alone, the ETF will track the price of XRP using the CF Ripple index of the Chicago Mercantile Exchange (CME), which provides real-time price benchmarks according to the CoinTelegraph report. Canary Capital also confirmed that this product will not use derivatives to avoid additional risks related to third-party contracts and credit risks.
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However, Canary Capital has not disclosed the party that will be the custodian for the ETF and has yet to provide information about the ticker to be used. If approved, this ETF will be the first XRP-based ETF spot passed by the SEC.
However, the approval of this product is likely to face challenges from the SEC, which is still in the process of filing an appeal against its legal case with Ripple, the publisher of XRP. The SEC accused Ripple of raising $1.3 billion through XRP offerings deemed unregistered securities.
Currently, XRP is trading at IDR 8,294, up 0.4% in the last 24 hours according to CoinGecko data at 15:05 WIB, Wednesday 9 October. Meanwhile, in the past week the price of XRP has dropped 9.5%. However, XRP is a blockchain-based cross-border payment company that actively maintains partnerships with banking authorities in various countries.