Brad Garlinghouse, CEO of Ripple, has expressed optimism regarding Canary Capital’s recent filing with the U.S. Securities and Exchange Commission (SEC) for a spot XRP exchange-traded fund (ETF).
Canary Capital Files for XRP ETF
Canary Capital, a crypto investment firm, created a stir in the crypto space by submitting an S-1 application to the SEC for a spot-based. If approved, this ETF would allow investors to gain exposure to XRP, currently the seventh-largest cryptocurrency by market cap, without the need to directly buy or hold the asset.
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The net asset value (NAV) of the proposed ETF will be calculated based on the CME CF Ripple–Dollar Reference Rate. Canary Capital will sponsor and manage the ETF, while CSC Delaware Trust Company, a major capital market firm, will serve as the fund’s trustee. However, the filing did not reveal the name of the custodian or administrator for the fund.
Garlinghouse Anticipates XRP ETF
Garlinghouse responded to the news with enthusiasm, tweeting a GIF with the caption “it is happening again.” This comment reflects his optimism that another company has taken steps to introduce an XRP ETF in the U.S. market. Garlinghouse has consistently shown confidence in XRP securing a spot-based ETF, particularly after the approval of multiple Bitcoin and Ethereum spot ETFs by the SEC.
https://t.co/h6etwkp59c pic.twitter.com/1WiBNcIo7H
— Brad Garlinghouse (@bgarlinghouse) October 8, 2024
He believes that it is only a matter of time before an XRP ETF is approved in the U.S. His confidence has been echoed by two companies recently submitting applications to launch XRP spot ETFs.
Ripple’s Confidence Grows Amid SEC Appeal
On October 1, Bitwise, a crypto asset manager, also submitted an S-1 registration for a spot-based XRP ETF. Canary Capital’s filing follows closely behind the SEC’s notice of appeal to challenge the ruling in favor of Ripple regarding the sale of XRP.
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Although the SEC has yet to file its appeal brief, speculation suggests that the regulator aims to reverse Judge Analisa Torres’ decision, which ruled that certain XRP sales were not securities. Despite this, Ripple remains confident in XRP’s non-security status as Judge Torres’ ruling stands as the current legal precedent.
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The SEC has previously acknowledged that digital currencies like XRP are “nothing but computer code” and are not inherently securities. While the SEC is appealing other aspects of the Ripple decision, it is unclear if it will approve the XRP ETF applications by Canary Capital and Bitwise.
