Purpose Files for XRP ETF Amid Growing Institutional Interest

Purpose Investments, a leading Canadian asset management firm, has filed a preliminary prospectus for a spot XRP exchange-traded fund (ETF), marking a significant step towards providing investors with regulated access to the popular cryptocurrency. The proposed Purpose Ripple ETF aims to offer long-term exposure to XRP and capital appreciation opportunities within a familiar and regulated framework.

Som Seif, CEO of Purpose Investments, noted the increasing adoption and institutional interest in XRP as a driving factor behind the ETF application. "As XRP sees increasing adoption and institutional interest, we believe an ETF can offer investors a transparent and familiar way to access it within a regulated framework," he stated.

The filing comes on the heels of Purpose Investments' recent application for a spot Solana (SOL) ETF, demonstrating the firm's commitment to providing investors with access to popular and growing digital assets. The Canadian securities regulators will now review the preliminary prospectus, with a potential launch pending regulatory approval.

Purpose Investments' move follows a trend of asset managers seeking to launch XRP ETFs in the United States and other regions. Grayscale, CoinShares, and Bitwise are among the asset managers that have filed for approval to launch XRP ETFs, while other top cryptocurrencies like Solana, Litecoin, and Dogecoin have also attracted spot ETF applications.

These developments have accelerated following regulatory shifts, particularly the departure of former SEC chair Gary Gensler. Purpose Investments previously launched the world's first Bitcoin ETF in February 2021, while U.S.-based asset managers had to wait until January 2024 for approval from the Securities and Exchange Commission. Since then, spot Bitcoin ETFs in the United States have attracted over $121 billion in assets.