KEY POINTS
- Canary said there is growing demand for access to cryptocurrencies beyond $BTC and $ETH
- A crypto user said $XRP may soon 'decouple' from Bitcoin and make a name for itself
- The news came days after the SEC filed to appeal a court's ruling regarding $XRP's status as a non-security
Days after Bitwise Asset Management filed an S-1 with the U.S. Securities and Exchange Commission (SEC) to issue an XRP exchange-traded fund (ETF), cryptocurrency investment firm Canary Capital has joined the first-movers circle.
Canary submitted the filing on Tuesday, becoming only the second company to apply with the financial regulator for an XRP ETF, marking another significant move among crypto investment firms that believe in the XRP token's potential.
Why is Canary Joining the $XRP ETF Lineup?
A Canary spokesperson said that the investment firm has been seeing "encouraging signs" that the regulatory environment is becoming more progressive. There is also an apparent growth in demand for "sophisticated access" to cryptocurrencies beyond top digital currencies like Bitcoin and Ethereum, the spokesperson added.
There are investors "seeking access to enterprise-grade blockchain solutions and their native tokens such as XRP," the spokesperson concluded.
Crypto Community Welcomes News of Another Potential $XRP ETF
After Bitwise became the first mover in XRP ETF filings, the crypto community went wild, hopeful that the SEC will also approve ETFs for other digital assets moving forward.
With news that another firm is entering the fold, crypto users are going wild.
"Very soon XRP will decouple from BTC and do its own thing," one user said.
While the projection is possible, decoupling may be a strong word to use in this case, considering how XRP is still far from reaching the same level of success as the world's largest cryptocurrency by market value.
Furthermore, XRP has yet to break through the $4-mark and has been on a price downtrend in the last two weeks. In comparison, Ether, the second-largest digital currency, is currently priced at around $2,400, while Bitcoin is trading above $62,000 as of late Tuesday.
Still, many crypto users believe the development is a huge step forward for XRP, which is embroiled in a legal battle with the SEC over largest-holder Ripple.
One user even suggested that XRP may flip Solana (SOL), another top crypto token. If such a scenario happens should an XRP ETF be approved, the user expects "max[imum] pain" for the SOL community.
Even Ripple CEO Brad Garlinghouse is celebrating the development, posting a meme that states, "It's happening again." Garlinghouse predicted in June that ETFs beyond BTC and ETH are inevitable, although he did acknowledge that the road to approval will be much more challenging.
SEC vs Ripple Saga Continues
Meanwhile, Ripple, which is closely associated with the XRP token, has yet to find complete relief from the SEC's hounding as the Wall Street regulator filed to appeal a court's ruling in 2023 regarding XRP's status as a non-security.
Ripple, which holds the largest amount of XRP, said it will not back down from the fight, especially after the appeal was filed just before SEC enforcement chief Gurbir Grewal resigned from his post.
