XRP is currently in the spotlight as the cryptocurrency market prepares for a groundbreaking event: the launch of the first pure-play 33 Act ETF comprised exclusively of XRP, spearheaded by Canary Capital. This development has garnered significant attention, especially following an announcement from Yoshitaka Kitao, the chairman of Japanese firm SBI, who highlighted a substantial investment his company is making in the cryptocurrency sector.
In a recent tweet, Kitao revealed that SBI has committed 30 billion yen—equivalent to approximately $200 million—to XRP treasury company Evernorth. This investment grants Evernorth nearly 20% of its total shares. The move underscores SBI’s ongoing interest in XRP, as the company has previously established a partnership with Ripple through its subsidiary, SBI Ripple Asia.
The fundraising efforts surrounding Evernorth have also been noteworthy. Back in October, Evernorth, with the support of Ripple, announced a SPAC deal with Armada Acquisition Corp II aimed at raising $1 billion. This includes the aforementioned $200 million investment from SBI, as well as contributions from other major players such as Ripple, Rippleworks, Pantera Capital, Kraken, GSR, and prominent Ripple figure Chris Larsen. This deal is expected to create one of the largest public XRP treasuries, wherein the company will procure XRP on the open market and explore various yield strategies.
Meanwhile, the anticipation surrounding the XRP ETF has resulted in a noticeable uptick in XRP’s market activity. As of the evening of November 12, Nasdaq certified Canary Capital’s spot XRP ETF, with the ticker symbol XRPC. This approval marks a significant milestone, as it allows for the launch of the first U.S. exchange-listed XRP fund, slated to commence trading on Thursday. The ETF’s approval is considered one of the swiftest approvals through the SEC’s 8(a) automatic-effectiveness process, emphasizing the momentum building around this offering.
In reaction to this news, the price of XRP surged early Thursday, experiencing an increase of up to 5%, climbing from $2.38 to $2.52. Trading volumes saw a dramatic rise of 44%, reaching $5.9 billion as traders prepared for the ETF’s introduction. Analysts predict that the launch of this ETF could lead to significant institutional investment in XRP, paralleling trends observed with previous spot-crypto Exchange Traded Products (ETPs).
As the market watches closely, the combination of SBI’s substantial investment and the impending ETF launch is likely to influence XRP’s trajectory and may establish new benchmarks in the rapidly evolving cryptocurrency landscape.
