Canary Capital has submitted an updated application for an ETF that will allow traditional investors to invest in XRP without needing to use cryptocurrency exchanges.
ETF Structure for XRP
The ETF will be structured as a Delaware statutory trust and will directly hold XRP, using the CoinDesk XRP CCIX New York Rate for pricing. Custody services will be provided by a designated trust company, similar to existing bitcoin ETFs.
Benefits and Accessibility of Investments
If approved, investors will be able to buy and sell shares through regular brokerage accounts, making XRP accessible through traditional trading channels. This opens opportunities for investors seeking transparency and simplicity compared to futures-based products.
Market and Investor Risks
Despite growing optimism, the filing notes several risks. The trust will not fall under the protections of the Investment Company Act of 1940, meaning holders won’t receive the same safeguards as mutual fund investors. Exchange outages or custody vulnerabilities could expose investors to significant losses. However, optimism around XRP’s regulatory position has increased following the dismissal of the SEC's lawsuit in U.S. appeals court.
Approval of the ETF would mark a milestone for XRP and position it alongside bitcoin among digital assets accessible through regulated exchange-traded products.
