XRP News Today: Purpose Investments Launches First Spot XRP ETF in North America

Toronto-based asset manager Purpose Investments has secured regulatory approval to launch a spot XRP exchange-traded fund (ETF) in Canada this week. This development allows investors to gain direct and secure exposure to XRP, the fourth-largest cryptocurrency by market capitalization, through traditional investment accounts such as TFSAs and RRSPs.

The Purpose XRP ETF is scheduled to commence trading on the Toronto Stock Exchange on Wednesday, June 18, under the ticker symbol XRPP. This marks the first spot XRP fund to be approved in North America. Purpose Investments initially filed its preliminary prospectus for the spot XRP fund on January 31, aiming to be the world’s first XRP ETF issuer. The Ontario Securities Commission recently granted a “final prospectus receipt,” the final step before the fund can start trading.

The Purpose XRP ETF will be available in three versions: CAD-hedged (XRPP), CAD non-hedged (XRPP.B), and US dollar (XRPP.U) units. This launch comes amidst growing institutional interest in XRP. Vlad Tasevski, Chief Innovation Officer at Purpose Investments, highlighted that the approval indicates Canada's leadership in providing investors with safe and compliant access to crypto assets like XRP. He stated, “We’re proud to continue pushing the boundaries of what’s possible in the space by offering investors simple, secure access to the infrastructure powering real-world blockchain adoption.”

Purpose Investments previously introduced the world’s first spot Bitcoin ETF in Canada in 2021, years before similar products were approved in the United States. The imminent launch of the spot XRP ETF in Canada puts pressure on the United States, where no spot XRP fund currently exists despite XRP being created by a US-based company. Ripple, the firm most closely associated with XRP, has made progress in resolving its legal dispute with the US Securities and Exchange Commission (SEC).

Similar spot and futures-based XRP investment vehicles are already trading in other jurisdictions. For instance, Hashdex debuted its spot XRP ETF on B3, the Brazilian stock exchange, in April. Meanwhile, several US-based firms, including Bitwise, WisdomTree, Franklin Templeton, and Grayscale, have submitted paperwork for spot XRP fund approval with the SEC. The approval of the Purpose XRP ETF by Canadian regulators signifies a growing acceptance of cryptocurrency-based investment products in traditional financial markets. This ETF will provide investors with exposure to XRP, a digital asset known for its use in cross-border payments and remittances. The launch is expected to attract a broader range of investors interested in gaining exposure to XRP without directly purchasing and holding the cryptocurrency.

The timing of this approval is significant given the ongoing legal battle between Ripple and the SEC. The SEC has accused Ripple of conducting an unregistered securities offering through the sale of XRP, while Ripple maintains that XRP is a currency and not a security. The outcome of this dispute could influence the regulatory treatment of cryptocurrencies in the United States and potentially affect the approval of spot XRP ETFs in the country. The launch of the Purpose XRP ETF in Canada could serve as a catalyst for similar products in other jurisdictions, including the United States. According to analysts' forecasts, there is an 88% chance of a spot XRP ETF being greenlit this year following the launch of CME Group's regulated XRP futures. This suggests that the regulatory environment for cryptocurrency-based investment products may be becoming more favorable.

The approval of the Purpose XRP ETF also highlights the growing demand for cryptocurrency-based investment products among investors. The launch of the ETF is expected to further fuel this demand, as investors seek regulated and transparent investment vehicles for gaining exposure to XRP. In conclusion, the approval of the Purpose XRP ETF by Canadian regulators represents a significant development for the cryptocurrency industry. It demonstrates the growing acceptance of cryptocurrency-based investment products in traditional financial markets and could pave the way for similar products in other jurisdictions, including the United States. The launch of the ETF is expected to attract a broader range of investors and further fuel demand for cryptocurrency-based investment products.