Canary Capital Files for Spot XRP ETF Approval with SEC

• Canary Capital has filed for spot XRP ETF with the U.S. SEC.
• The firm became the second to pursue the product after Bitwise.

Canary Capital, a digital asset investment firm, has officially filed a registration for a spot XRP ETF with the U.S. Securities and Exchange Commission (SEC). The firm initiated this move a week after Bitwise filed its own S-1 registration for an XRP ETF. 

Canary Capital became the second firm to pursue the product this month. The filing was staged against the backdrop of the ongoing legal battle with Ripple Labs and SEC regarding the classification of XRP. 

Canary Capital founder Steven McClurg stated that the factors driving the firm’s XRP ETF filing are the appreciative regulatory landscape and the increasing investor interest in cryptocurrencies beyond Bitcoin (BTC) and Ethereum (ETH). Moreover, investors are seeking access to advanced blockchain solutions like XRP. 

Besides, a federal judge’s decision that Ripple’s institutional sales of XRP were unregistered securities offerings in July 2023. It declared that the secondary sales of Ripple’s XRP did not classify as securities transactions. However, Ripple was ordered to pay a $125 million penalty, a massive cut from the expected $2 billion demanded fines; this caused a dip in XRP’s price.

On the other hand, XRP followers have initiated a petition, “Stop the SEC’s Unnecessary and Frivolous Appeal in the Ripple v. SEC Case.” They had collected over 8.3K signatures, aiming for a total of 10K signatures.

Price Momentum of XRP

The current price action of XRP is likely to be in the bearish zone. Over the past 24 hours, the asset has experienced a moderate spike of 0.65%. It has observed high and low prices at $0.5216 and $0.5341, respectively. 

At press time, XRP traded at $0.5333. Meanwhile, XRP’s daily trading volume has plunged over 19.40% to $906 million, as per CMC data. If the asset could attempt an upward correction, it might likely test the resistance at $0.5563. On the other hand, XRP could bottom to the nearest support level in the $0.5150 range if the momentum reverses. 

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