Ripple’s cryptocurrency XRP is on the verge of a potential exponential price surge as Canary Capital moves to launch an XRP exchange-traded fund (ETF) in the United States. Canary Capital has officially submitted an S-1 form to the U.S. Securities and Exchange Commission (SEC), marking a significant step toward making XRP accessible to traditional investors through a regulated financial product.
This is the second major XRP ETF filing in the U.S. within the last week, following a similar move by Bitwise. The increasing interest in XRP ETFs signals a growing demand for regulated, easily accessible cryptocurrency investments beyond Bitcoin (BTC) and Ethereum (ETH), both of which are already available as ETFs and have attracted billions in investment inflows.
According to Canary Capital’s filing, the proposed ETF would track the price of XRP using the CME CF Ripple index, allowing investors to access the XRP market through traditional brokerage accounts without needing to directly purchase and store the cryptocurrency. This approach lowers the barriers to entry and mitigates some of the risks associated with holding digital assets.
The move comes as XRP ranks as the seventh-largest cryptocurrency by market cap, according to CoinGecko. The growing interest in XRP ETFs also reflects a more progressive regulatory environment, with increased investor appetite for cryptocurrencies beyond Bitcoin and Ethereum.
However, challenges remain. The SEC has yet to approve any spot XRP ETF, and the regulator’s ongoing legal battle with Ripple Labs over the classification of XRP as an unregistered security continues to cast uncertainty over the process. In August, Ripple was ordered to pay $125 million to the SEC as part of its settlement for selling unregistered institutional XRP tokens.
Despite these challenges, Steven McClurg, Canary Capital’s founder, remains optimistic, citing “encouraging signs” of regulatory progress. He noted the increasing demand from investors looking for exposure to enterprise-grade blockchain solutions like Ripple’s XRP.
While Bitwise and Canary Capital push forward with their respective ETF applications, the timing of any approval remains uncertain. The SEC has been hesitant to approve crypto ETFs under the leadership of Gary Gensler, and experts believe that any spot XRP ETF approval may be delayed until at least 2025.
Still, if approved, an XRP ETF could trigger significant inflows into the cryptocurrency, potentially driving up its price. Investors and crypto enthusiasts alike are watching closely as regulatory developments unfold, with many speculating that XRP could be poised for a substantial price move if ETFs gain approval in the U.S. market.
With the increasing momentum behind XRP ETFs, the cryptocurrency’s future in traditional finance is becoming more promising, despite the regulatory roadblocks that may lie ahead.