The Race for the First XRP ETF Begins as Canary Capital Joins the Competition

Canary's filing did not disclose a ticker or estimated fee for its ETF, which would be its first. The XRP filings signal that ETF providers are keen on expanding the crypto market to retail investors.

Stephane Ouellette, co-founder and CEO of FRNT Financial, noted, “This demonstrates that ETF providers will be closely following the regulatory landscape for perceived daylight in allowing them to offer new products.” Stephane added that “there’s still uncertainty whether they will be approved and it very much makes sense for two firms born out of the crypto native landscape to try to broaden their product offerings.”

The filings come after a federal judge ordered Ripple Labs Inc. in August to pay a civil penalty for selling XRP to institutional investors without registering it with U.S. regulators, concluding a years-long legal battle.

In September, Grayscale Investments, a crypto asset manager, launched the Grayscale XRP Trust, offering investors the chance to gain exposure to the token that powers the XRP Ledger, a peer-to-peer network designed to facilitate cross-border financial transactions.