What to Know:
- Canary Capital launched the first XRP spot ETF, trading under the ticker XRPC on Nasdaq.
- The ETF is structured under the Investment Company Act of 1940, ensuring regulatory compliance and qualified custody of assets.
- This fund enables traditional investors to access XRP and network-generated rewards through standard brokerage accounts.
Canary Capital has introduced the first exchange-traded fund (ETF) providing spot exposure to XRP, broadening the crypto ETF market beyond Bitcoin, Ethereum, and Solana. Trading under the ticker XRPC on the Nasdaq, this fund marks a significant step in offering diverse crypto investment options. This move reflects the increasing demand for regulated and accessible digital asset products.
The ETF is structured under the Investment Company Act of 1940, a regulatory framework that requires the use of a qualified custodian to hold the underlying crypto assets. This fund allows traditional investors to access XRP and network-generated rewards through a brokerage account without needing to directly manage crypto assets. Canary Capital, Bitwise, Franklin Templeton, and 21Shares have also filed documents for their spot XRP funds, signaling growing institutional interest.
Steven McClurg, CEO of Canary Capital, stated that XRP is a widely used digital asset, and an ETF will enable further adoption and growth. XRP operates on a consensus mechanism distinct from proof-of-stake blockchains. The ETF’s design offers yield features tied to blockchain participation, positioning it as part of a new category of digital asset funds that bundle potential income with crypto exposure.
The introduction of an XRP spot ETF by Canary Capital represents a notable advancement in the crypto investment landscape. As issuers and regulators explore new ways to incorporate blockchain-native features into regulated investment vehicles, the accessibility and appeal of digital assets to a broader market are likely to increase. This development underscores the ongoing evolution and maturation of the crypto market.
Source: Original article
