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Purpose Investments Files for World's First XRP Spot ETF

AInvestSaturday, Feb 1, 2025 1:17 am ET
1min read

Canadian asset management firm Purpose Investments has filed a preliminary prospectus for a spot XRP ETF, marking a significant step towards the potential launch of the world's first XRP exchange-traded fund. The company, which previously launched the first Bitcoin ETF in North America in 2021, aims to provide investors with a channel to participate in related asset investments without directly holding XRP.

The move by Purpose Investments comes amidst a growing interest in crypto ETFs, with several companies, including Grayscale, Canary Capital, and Bitwise, applying for XRP spot ETFs. The SEC has already acknowledged Litecoin's ETF application, and Bitcoin and Ethereum initially launched as Futures ETFs before becoming spot ETFs, with Grayscale playing a major role in that process.

However, the ongoing SEC lawsuit regarding XRP, which argues that the cryptocurrency is a security, remains a barrier to its ETF approval. Bloomberg analyst James Seyffart has warned that while XRP ETFs might be approved in 2025, it's likely that ETFs for other cryptocurrencies, such as Litecoin, will be prioritized. He suggested that the SEC's lawsuit against XRP needs to be resolved before its ETF approval can be considered.

The potential launch of an XRP ETF by Purpose Investments, if approved, could pave the way for more crypto ETFs and further boost the industry's growth. As the regulatory landscape continues to evolve, investors and companies alike are eagerly awaiting the outcome of the SEC's legal battle with XRP and the potential approval of crypto ETFs.

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