XRP News Today: Purpose Investments XRP ETF Surges 11.89% Despite XRP Struggles

North America’s first spot XRP exchange-traded fund (ETF), launched by Purpose Investments, is showing signs of strength following a choppy debut. Trading on the Toronto Stock Exchange, the fund surged 11.89% on June 30, closing at $10.63. Over the past five days, the ETF has gained 6.19%, and since its inception on June 18, it is up 7.37%. This resurgence comes despite the underlying XRP cryptocurrency struggling to break through key resistance levels. The ETF had initially mirrored the broader weakness in XRP, but appears to be decoupling somewhat in recent sessions.

The product is only the second spot XRP ETF globally, following Brazil’s Hashdex XRP offering. Purpose Investments charges a management fee of 0.69%, capped at 0.89%, with any cost savings passed on to investors. Notably, Canadian residents can hold the ETF in tax-advantaged accounts such as TFSAs and RRSPs, making it an attractive vehicle for diversified crypto exposure.

While the Canadian and Brazilian launches have had limited impact on XRP’s global price so far, bigger developments could be on the horizon. The U.S. Securities and Exchange Commission (SEC) recently requested public input on spot XRP and Solana ETF proposals from Franklin Templeton and WisdomTree. If approved, these products would be listed on Cboe’s BZX Exchange, potentially unlocking significant institutional participation and liquidity, marking the first such offering just south of the Canadian border.

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has been a significant factor influencing the price outlook for XRP. A ruling from Judge Torres is anticipated soon on a joint motion filed in June, which aims to lift restrictions on institutional XRP sales. If the motion is granted, it could pave the way for increased institutional investment in XRP, potentially driving its price higher. According to analysts' forecasts, there is a 70% chance of success for this motion, which could also lead Ripple to drop its appeal. This development, coupled with the rising interest in ETF products, could position XRP to challenge resistance levels and potentially revisit highs above $2.65. However, if the motion is denied or delayed, XRP may drop below $2.09 support, highlighting the critical juncture at which the cryptocurrency currently stands.

The launch of the spot XRP ETF by 3iQ on the Toronto Stock Exchange has already pulled in C$32 million in just three days, underscoring the growing demand for XRP-related investment products. This ETF provides investors with a regulated and accessible way to gain exposure to XRP, potentially attracting a broader range of investors who may have been hesitant to enter the cryptocurrency market directly. The success of this ETF could set a precedent for future spot XRP ETFs in North America and beyond, further legitimizing XRP as an investment asset.

The regulatory environment for cryptocurrencies remains complex and evolving, with various jurisdictions taking different approaches to the approval of ETFs. The approval of spot XRP ETFs in North America could signal a shift in regulatory sentiment towards cryptocurrencies, potentially opening the door for other cryptocurrency ETFs to gain approval. This development could have broader implications for the cryptocurrency market, as increased institutional investment and regulatory clarity could drive growth and innovation in the sector.