XRP News Today: Canada Launches First XRP ETF on Toronto Stock Exchange

Canada's first spot XRP exchange-traded fund (ETF) has commenced trading today, June 18, on the Toronto Stock Exchange. Issued by Purpose Investments, the asset manager behind the world's first spot bitcoin ETF, this launch marks a significant milestone for the cryptocurrency industry. The ETF is available in three units: CAD-hedged (ticker XRPP), CAD non-hedged (ticker XRPP.B), and US dollar (ticker XRPP.U). Investors can hold these ETFs in their registered accounts, such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs).

The Ontario Securities Commission has given final regulatory approval for this launch, which builds on Purpose Investments' legacy of innovation in the digital asset space. The firm was also responsible for filing the world's first spot Bitcoin ETF in 2021. This development underscores Canada's progressive stance on cryptocurrency regulations and reinforces the country's leadership in providing regulated access to digital assets.

Vlad Tasevski, Chief Innovation Officer at Purpose Investments, highlighted that the OSC’s approval of the XRP ETF shows Canada is leading the way in building a safe, regulated space for digital assets. The fund is available to trade on TSX in three versions: CAD-hedged (XRPP), CAD non-hedged (XRPP.B), and USD-denominated (XRPP.U). All of them have a charge of a 0.69% management fee. The total cost is capped at 0.89%, with any savings passed to investors.

Investors can hold the new XRP ETFs in popular Canadian accounts like Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), making it easier to gain crypto exposure without the need for crypto wallets or exchanges. To invest in the Purpose XRP ETF, traders first need access to the Toronto Stock Exchange (TSX), where the fund is listed. Investors need to open a brokerage account with a Canadian platform that supports TSX trading or any of the big banks' online brokerages. These platforms allow users to buy and sell ETFs much like regular stocks. Once the account is set up and funded, investors can search for the ETF by its ticker. As Purpose offers three versions of its XRP ETF: XRPP, XRPP.B, and XRPP.U, Investors can choose based on their currency and risk preferences. Once chosen, they can place a market or limit buy order through any brokerage with access to the Toronto Stock Exchange. The ETF can also be held in tax-advantaged accounts like a TFSA or RRSP.

The launch of the spot XRP ETF in Canada raises questions about the regulatory landscape in the United States. Despite being a leader in the crypto space, the U.S. has faced regulatory hurdles that have slowed similar initiatives. XRP has been at the center of a contentious legal battle with the U.S. Securities and Exchange Commission (SEC) since 2020, which alleged it was an unregistered security. A partial victory for Ripple in 2023 affirmed XRP’s non-security status on retail exchanges, but it has not pushed anything far beyond for XRP-based ETFs. Out of nine filings, none of the issuers have gained approval in the U.S., leaving investors and analysts speculating on the potential approval timeline. Adding to the intrigue, Franklin Templeton Investments is awaiting a decision on its application for a spot XRP ETF. This coincidence—Franklin Templeton’s decision followed by the Purpose’s launch—heightens the stakes, with some viewing it as a potential catalyst for U.S. regulatory action. While the crypto community was expecting a potential dismissal in the long-standing Ripple-SEC lawsuit, the decision is now delayed until August. A positive outcome on this ruling would have pushed Ripple toward the stronger side, eventually clearing the pathway for XRP ETFs. However, it has now driven mixed reactions in the market, with the XRP price surging nearly 11% from the weekly low before pushing back to the same levels.

The launch of the first XRP ETF in Canada could highly influence the SEC’s decision to approve one of the nine ETFs—or even all at once—in the coming months. Various analysts are expecting the SEC’s likely decision to drop its appeal, which will magnify discussions on the XRP ETF. This move by Purpose Investments not only provides investors with a new way to gain exposure to XRP but also paves the way for mainstream adoption of cryptocurrency. The ETF allows investors to gain exposure to XRP without directly holding the token or managing private keys, offering a simpler way to invest in the asset. The Purpose XRP ETF launch comes after Brazil rolled out its own XRP ETF earlier this year. The US SEC has still not decided on any XRP ETF yet. However, with Canada leading the way, a U.S. XRP ETF may soon follow.