Purpose Investments Files for Ripple ETF, Canada's Crypto Race Heats Up

Canadian asset manager Purpose Investments has filed a preliminary prospectus with Canadian securities regulators for the proposed launch of the Purpose Ripple ETF, which aims to invest substantially all of its assets in long-term holdings of Ripple (XRP). The fund manager, with over $23 billion in assets under management, is known for launching the world's first Bitcoin and Ether ETFs.

Som Seif, founder and CEO of Purpose Investments, stated that the company is committed to innovating and connecting traditional finance with decentralized finance. He believes that as XRP gains more adoption and institutional interest, an ETF would provide investors with a clear and regulated way to invest in it. Vlad Tasevski, Chief Innovation Officer, emphasized that the launch of the Purpose Ripple ETF is a significant milestone in their mission to be the top trusted partner for investors seeking to benefit from crypto and digital assets.

The Purpose Ripple ETF plans to offer ETF holders the opportunity for long-term capital growth. The fund aims to provide exposure to transformative digital assets and blockchain technologies through regulated investment vehicles.

The announcement comes shortly after NYSE Arca submitted a 19b-4 filing to convert Grayscale’s XRP Trust into a spot exchange-traded fund, with Coinbase Custody as the custodian and BNY Mellon Asset Servicing acting as the transfer agency. Other asset managers, including 21Shares, Bitwise, and VanEck, have also filed paperwork with the SEC to introduce spot XRP ETFs, pending regulatory approval.

Financial services giant JPMorgan estimated that an approved spot XRP ETF could attract up to $8 billion in net assets over the first year. While the U.S.-based asset managers were the first to submit applications, Canada's securities regulator generally greenlights crypto ETFs considerably faster compared to the U.S. SEC.