Ripple CEO Says “It is happening again”. Here’s why

Canary Capital, a crypto-focused investment firm, has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), seeking approval for a spot-based XRP exchange-traded fund (ETF).

This ETF would expose investors to XRP, the cryptocurrency ranked seventh by market capitalization, without the need to buy or hold it directly.

According to the filing, the net asset value (NAV) of the proposed ETF will be calculated using the CME CF Ripple – Dollar Reference Rate.

Canary Capital will sponsor and manage the ETF, while CSC Delaware Trust Company will be the trustee. However, the company has not yet revealed which institution will take on the role of custodian or administrator for the fund.

Ripple CEO’s Reaction

Ripple CEO Brad Garlinghouse expressed optimism following Canary Capital’s filing for the spot-based XRP ETF.

In response to the big news, Garlinghouse tweeted a GIF that read, “It is happening again.” His comment reflects the growing number of companies filing with the SEC to launch XRP ETFs, following the recent approval of similar products for Bitcoin and Ethereum.

Garlinghouse has consistently maintained that it is only a matter of time before XRP receives similar treatment. With the latest filings, Garlinghouse remains confident that an XRP spot ETF is around the corner in the United States.

Surge in Confidence for XRP ETFs

Early this month, Bitwise, a major asset management firm in the crypto space, also submitted its S-1 registration statement to the SEC for a spot-based XRP ETF. This growing interest in XRP ETFs coincides with increased confidence in XRP as a key digital asset, particularly following recent favorable legal rulings for Ripple.

The filing by Canary Capital is significant as it comes at a time when the SEC is still engaged in ongoing legal disputes with Ripple. Most notably, the SEC is appealing a ruling by Judge Analisa Torres, which determined that Ripple’s programmatic sales of XRP and other distributions were not violating securities laws.

Ripple’s Legal Position on XRP

Despite the SEC’s intent to appeal aspects of the Ripple case, Ripple maintains that XRP’s status as a non-security remains intact. The company, through Garlinghouse, continues to emphasize that the July 2023 ruling by Judge Torres remains the prevailing legal position. Ripple believes the ruling is final in declaring XRP’s non-security status, regardless of the SEC’s current legal maneuvers.

Future of XRP ETFs Amid SEC Appeal

While Ripple remains confident in its legal standing, the fate of XRP ETFs in the U.S. remains uncertain. The SEC has yet to release its official brief for the appeal against the Ripple ruling. There is speculation that the regulator aims to overturn specific aspects of the decision, such as the nature of programmatic XRP sales. However, the SEC has refrained from contesting XRP’s broader status as a non-security.

This regulatory backdrop creates an unclear environment for companies like Canary Capital and Bitwise, both of which are awaiting the SEC’s response to their applications for XRP ETFs. Should the SEC choose not to appeal the non-security ruling, it could pave the way for approval of these ETFs, further expanding institutional access to XRP.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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