Canada’s First XRP ETF in the Making
For the first time, Purpose Investments has filed a preliminary prospectus with Canadian regulators to launch the country’s first XRP exchange-traded fund. This is a move to offer institutional investors regulated exposure to XRP, one of the most widely traded cryptocurrencies.
The firm, already credited with successfully launching Bitcoin and Ethereum ETFs, wants to expand its suite of crypto-focused offerings. In that case, if approved, the XRP ETF would afford investors an safe and transparent method to attain long-term exposure to XRP, without the necessity of holding an underlying asset.
Bridging Traditional and Digital Finance
Purpose Investments is a crypto ETF pioneer, having been the first to debut a spot Bitcoin and Ethereum ETF on the Toronto Stock Exchange back in 2021. Now, the firm wants to do the same with XRP.
Our objective is to bridge the gap between traditional finance and decentralized assets,” Purpose Investments CEO Som Seif said. “With the growing adoption of XRP and increased institutional participation, we believe an ETF will be another exciting step for investors to gain exposure in a structured and regulated product.”
The proposed ETF would invest nearly all of its assets into XRP, providing direct exposure to the cryptocurrency while operating within a regulated framework.
XRP ETFs Gain Traction Worldwide
ETPs based on XRP already exist in various global markets, but the impact would be much stronger if a regulated spot ETF were to go live in Canada.
For instance, asset managers such as Grayscale, CoinShares, and Bitwise have filed applications for XRP-based ETFs in the United States, but those remain pending before the Securities and Exchange Commission.
Regulatory Shifts and Increased Applications
New applications for crypto ETFs in the U.S. have been accelerated by the re-election of President Donald Trump and the resignation of SEC Chair Gary Gensler. Several asset managers, such as WisdomTree and 21Shares, have filed for spot ETFs for other cryptocurrencies as well, such as Solana, Litecoin, and Dogecoin.
Preliminary decisions by the SEC are expected in late January for the applications of the XRP ETFs. The deadline for Grayscale stands at January 23, while other applications are expecting their rulings by January 25.
XRP Price Surge and Investment Outlook
The price of XRP once reached $3.20 on January 15 for the first time since 2018 and then corrected to $3.09. Analysts project that an approved XRP ETF would attract between $3 billion and $6 billion in investments and possibly increase its institutional adoption.
If finally approved, this XRP ETF by Purpose Investments would further cement Canada’s leadership in institutional cryptocurrency investment.
