Canary Capital has officially filed for an XRP ETF, following Bitwise’s similar move a week earlier. The ETF will provide investors with exposure to XRP without the need for direct purchases.

Managed by Canary Capital Group, the fund will track XRP’s value using the CME CF Ripple. This structure allows institutional and retail investors to invest in XRP through traditional financial markets while reducing complexities related to custody, security, and regulation.

This filing follows a similar move by Bitwise, which filed for its own spot XRP ETF just a week prior. Bitwise’s filing, like Canary’s, marks a significant push in bringing XRP into traditional financial markets through ETF products.

The Trust will rely on its custodian to maintain XRP in a mix of cold and hot wallets, with strict security protocols for key generation and storage. Creations and redemptions of shares will occur only in large baskets via authorized participants who will deposit or receive cash representing XRP.

Canary Capital emphasized its confidence in the evolving crypto market and its potential beyond Bitcoin and Ethereum.

“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,” a Canary spokesperson noted.

Last week, the SEC appealed a court ruling in its case against Ripple Labs regarding XRP’s classification. After a federal judge’s July 2023 decision that only Ripple’s institutional XRP sales were unregistered securities offerings, the SEC challenged the lighter $125 million penalty, significantly lower than the desired $2 billion.

This move has also stalled progress towards an XRP ETF, with ongoing regulatory uncertainty likely delaying approval until 2025 or later.