The race to introduce an exchange-traded fund (ETF) tracking XRP, the seventh-largest cryptocurrency, has officially begun. Canary Capital Group, a newly formed digital asset investment firm, submitted a filing with the Securities and Exchange Commission (SEC) to launch the Canary XRP ETF. This move comes just a week after Bitwise Asset Management Inc. became the first firm to file for an ETF tied to XRP. Canary, founded by Steven McClurg, a former co-founder of Valkyrie Funds, cited a more progressive regulatory environment and rising demand from investors as key drivers for its decision.

These filings come on the heels of the highly anticipated Bitcoin and Ether ETFs, which have attracted billions in capital since their launch earlier this year. Companies like VanEck Asset Management and 21Shares AG are also seeking to introduce ETFs linked to other tokens like Solana. With the crypto market evolving and XRP gaining traction, issuers are pressuring regulators to open up these digital assets to retail investors. The bids for an XRP ETF follow Ripple Labs Inc.'s legal battle, where a judge ordered them to pay a civil penalty for selling XRP without proper registration.