Canary Capital is moving closer to obtaining regulatory approval for its cryptocurrency investment products. The company filed an updated registration document with the U.S. Securities and Exchange Commission (SEC) on Friday for its proposed exchange-traded fund (ETF), Canary XRP. The submission, titled Pre-Effective Amendment No. 2 to the Registration Statement Form S-1, represents a new step in the ongoing review process that could lead to final market approval.
In Brief
- Canary Capital has filed an updated registration with the SEC for its proposed Canary XRP ETF, signaling continued progress toward potential approval.
- Analysts believe that XRP could see a sharp price increase of up to double digits as soon as the SEC gives its approval to the ETF.
- Canary Capital also advanced its Solana ETF, the Canary Marinade SOL ETF, which offers an expense ratio of 0.50%.
Key Updates in Modified XRP ETF Filing
According to the filing, the Canary XRP ETF will be traded on the Cboe BXZ Exchange under the symbol XRPC. The primary objective of the fund is to track the market value of the XRP held by the trust, net of any operating expenses or associated liabilities. Essentially, it aims to reflect the price performance of XRP via a traditional investment format.
There ETF valuation will rely on a price reference designed by CoinDesk Indices, which acts as a reference provider. This index applies a 60-minute time-weighted average price based on the XRP-USD reference rate CCIXber, using transaction data from several major XRP trading platforms. This approach helps establish a fair and consistent benchmark for the trust's XRP holdings by smoothing price volatility and avoiding the influence of short-term price spikes.
Thanks to this structure, investors can gain exposure to XRP without directly owning the cryptocurrency. Buying and selling ETF shares through a standard brokerage account eliminates many of the complexities and risks associated with self-custody, such as private key management and digital wallet security.
To protect its digital assets, Canary has partnered with Gemini Trust Company and BitGo Trust Company as custodians. These companies are responsible for keeping the trust's XRP secure and intact. The updated document also confirms a reduction in sponsor fees to 0.50%, reflecting a lower cost to investors compared to previous versions of the filing.
Canary Capital Updates Solana ETF Filing
Alongside the progress on its XRP product, Canary Capital has also tabled a new amendment for its Canary Marinade SOL ETF, focused on Solana. The filing states that the ETF carries a 0.50% expense ratio and will allow investors to receive the full staking rewards generated by the Solana network, with no portion retained by the sponsor. This structure could make the product more attractive to those seeking both exposure to Solana and additional returns through staking.
ETF analyst Eric Balchunas noted that Canary filed Amendment No. 6 for the Solana ETF, a sign that the fund could be nearing its final approval phase.
XRP and Solana Observed Changing Fund Flows
As anticipation continues to build around the XRP and Solana ETFs, recent inflows into these digital assets have slowed. CoinShares' weekly digital asset fund flow report, released on October 13, shows that:
- Solana saw entries of approx. $93.3 million last weekreflecting continued investor interest.
- XRP saw around $61.6 million in inflows during the same period, showing stable engagement in the market.
- Despite the significant amounts, the report notes that inflows have slowed, suggesting that some investors are waiting for the SEC to finalize ETF approvals before committing more capital.
Financial analyst Zach Rector believes that the ETF authorization could bring a big price rise for XRP once the SEC review is completed. He indicated that “after this government shutdown ends, XRP ETFs will be launched. We will be well on our way to double figures. »
At the time of writing, XRP was at $2.52, down 2% over the last 24 hours, while Solana was at $203, up around 3% over the same period.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
