In a strategic move, Canary Capital has filed for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), becoming the second firm to seek approval in just seven days. The firm aims to simplify access to XRP by offering a fund that can be purchased through traditional brokerage accounts, removing the complexities and risks associated with directly holding XRP.

Canary Capital’s ETF proposal is designed to track the price of XRP using the Chicago Mercantile Exchange (CME) CF Ripple Index. This approach ensures accurate price tracking without relying on derivatives, which Canary claims could introduce unnecessary risks, such as credit or counterparty exposure. The ETF would cater to investors looking for strategic and tactical asset allocation without the need to manage XRP themselves.

Notably, Canary Capital has not revealed which custodian will manage the fund’s assets or what ticker symbol the ETF would trade under. The filing follows Bitwise's similar application, submitted just days earlier, as both firms aim to pioneer the first SEC-approved spot XRP ETF.

However, approval remains uncertain, especially considering the SEC's ongoing legal battle with Ripple, the issuer of XRP. The regulator continues to assert that XRP is an unregistered security, raising significant hurdles for the approval of these proposed ETFs.

Canary and Bitwise now await the SEC’s decision, which could pave the way for more institutional interest in XRP if either fund receives the green light.