The United States‘ first spot XRP ETF has joined the growing trend of crypto ETFs listing on Nasdaq, following a regulatory green light today. The launch represents a new step for institutional access to a digital asset which was designed to provide quick and low cost cross-border transactions within existing banking systems.
Canary Capital was granted clearance for its Canary XRP ETF on Wednesday. The listing will enable investors to access XRP via an exchange traded product. The firm said the product allows people to gain exposure to the asset without requiring them to access digital asset trading platforms or custody outside of standard market processes.
The premier comes amid recent regulatory progress that allowed spot cryptocurrency funds to operate within specified oversight frameworks. These changes paved the way for issuers to bring investment vehicles that are linked to the real-time price of particular digital assets to market. The approval landed XRP in a league of networks that now have regulated on-ramps for marketing participation.
XRP ETF Boosts Institutional Access
XRP has been operating in the market for many years and is one of the leading players within an overall strong sector, Canary Capital CEO Steven McClurg said in a statement. It also opens the door for wider institutional participation, he said. He also said access via mainstream exchanges could lead to more usage of the network through existing financial networks.
The ETF provides exposure to XRP while tracking the performance of payments processed on the XRP Ledger. The product seeks to replicate network activity on value-transfer rails and settling mechanisms, Canary Capital said. Its architecture highlights the functional characteristics underlying use of the asset in cross-border payment applications.
The ledger was created as a system made to allow for interoperability and real-world settlement, the firm said. It emphasized the low cost structure and finality of transaction. This allows it to be used frequently in enterprise applications, fintech products etc. Adoption has grown as enterprises look for cost-effective ways to move value between locations.
Canary Capital stated in a X post that the fund is neither a commodity pool nor an investment company as defined under the Investment Company Act of 1940. That means it does not adhere to the same restrictions that registered mutual funds and regular exchange-traded funds must. However, the structure compares it to other spot digital asset products operating under different regulatory regimes.
Growing Interest in Regulated Crypto Products
XRPC hit $26M in volume in its first 30 minutes, according to Bloomberg’s Eric Balchunas. That already tops his projected $17M. Market commentators observed early demand as trading kicked off. The early momentum has defied expectations. However, he added that XRPC now stands a decent chance of beating BSOL’s $57M for the biggest day one debut launch this year.
The first Canary XRP ETF offers a new chapter for digital asset access in the United States. It offers a controlled access pathway for those investors that desire exposure to an asset set around settlement. The development also suggests a further expansion of digital-asset products in traditional markets.
Source: https://coingape.com/canarys-spot-xrp-etf-xrpc-goes-live-on-nasdaq/
