Canary Capital is poised to initiate its XRP-focused exchange-traded fund (ETF) as early as this week, following its recent regulatory filing. The Nashville-based firm submitted an 8-A form with the U.S. Securities and Exchange Commission (SEC), a necessary step for registering securities. This new ETF aims to track the performance of XRP, the fourth largest cryptocurrency by market capitalization.
The anticipated launch could come just days after the Rex-Osprey XRP ETF debuted in September, impressively accumulating over $138 million in assets after a highly successful first day, which alone generated $38 million. With growing investor interest in alternative cryptocurrencies, the introduction of another XRP-focused ETF is expected to provide U.S. investors with additional opportunities to gain exposure to this digital asset.
Eric Balchunas, a significant figure in the ETF sphere, noted the potential for Canary's fund, communicating that while the launch isn't finalized, it is on track and that interested investors should stay updated. Industry analysts have forecasted strong inflows for this new ETF, particularly given the recent success of altcoin ETFs such as Bitwise's Solana fund, which reached $500 million in assets just two weeks after its release.
Analysts are optimistic about the market's appetite for diverse crypto asset funds, fueled by successful Bitcoin and Ethereum ETFs that have already commanded substantial assets—approximately $139 billion for Bitcoin and nearly $21 billion for Ethereum. With the SEC considering more than 90 applications for various cryptocurrencies, the overall environment indicates growing acceptance and demand for crypto-focused investment vehicles.
The timely launch of Canary Capital's XRP ETF could provide investors with the chance to invest in an emerging segment of the cryptocurrency market, highlighting the increasing sophistication and diversification of investment options available in the digital asset landscape. As cryptocurrencies continue to gain popularity, the establishment of additional funds is anticipated to expand investor access to innovative financial products while potentially attracting significant capital inflows from those looking for alternatives beyond Bitcoin and Ethereum.