The Race for XRP ETFs Begins
The competition to launch exchange-traded funds (ETFs) tracking XRP—the seventh-largest digital token—has intensified with two major filings:
Canary Capital Group submitted paperwork to the SEC for its Canary XRP ETF on Tuesday.
- The new digital asset-focused firm was founded in September by Steven McClurg, former Valkyrie Funds co-founder.
- Cited "improving regulatory clarity" and growing investor demand as key motivators.
- Bitwise Asset Management became the first mover with its XRP ETF application a week earlier.
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Market Context: Crypto ETFs Gain Traction
- Bitcoin & Ethereum ETFs launched earlier this year have seen mixed flows:
| Asset | Net Inflows (2024) |
|-------------|-------------------|
| Bitcoin ETF | $19B |
| Ethereum ETF| -$550M | - Other tokens like Solana are also under consideration by VanEck and 21Shares.
Why XRP Matters Now
The filings signal:
- Growing pressure to expand crypto access to retail investors
- Providers are actively monitoring regulatory windows
"ETF issuers will pounce on any regulatory opportunity—even with approval uncertainties," says Stephane Ouellette of FRNT Financial.
Regulatory Backdrop
- August 2024: Ripple Labs ordered to pay penalties for unregistered XRP sales to institutions.
- September 2024: Grayscale launched its XRP Trust to provide exposure to the XRP Ledger network.
FAQ: XRP ETFs Explained
Q: What makes XRP different from Bitcoin ETFs?
A: XRP’s use case focuses on cross-border payments, whereas Bitcoin is primarily a store of value.
Q: When might these ETFs launch?
A: Approval timelines depend on SEC reviews—likely months to years.
Q: How could this impact XRP’s price?
A: Increased institutional demand historically boosts crypto valuations, but regulatory hurdles remain.