Purpose Investments to Launch Canada’s First XRP ETF

Following its previous successes with Bitcoin and Ethereum ETFs, asset manager Purpose Investments filed a preliminary prospectus with Canadian securities regulators on Thursday.

The filing intended to launch what would become the world’s first XRP ETF in Canada and provide investors with a regulated opportunity for long-term exposure to XRP and potential capital gains.

If approved, the new product would operate as a spot XRP ETF, offering a regulated method for securing long-term exposure to XRP alongside the possibility of benefiting from its capital appreciation.

Spot Ripple ETF on the Horizon? Purpose Investments Aims for Another First

In an official statement issued on Thursday, the firm underscored its determination to replicate the successes of its Bitcoin and Ethereum ETFs by introducing the first spot XRP ETF.

Purpose Investments, recognized for launching the inaugural spot Bitcoin and Ethereum ETFs on the Toronto Stock Exchange in 2021, now seeks to extend similar long-term exposure opportunities to XRP.

The proposed ETF planned to invest nearly all of its assets in long-term holdings of XRP.

Purpose Investments founder and CEO Som Seif stressed the firm’s commitment to innovation and to bridging the gap between traditional finance and decentralized finance.

“At Purpose, we remain steadfast in our commitment to innovation and to bridging the gap between traditional and decentralized finance,” Seif said.

“As XRP sees increasing adoption and institutional interest, we believe an ETF can offer investors a transparent and familiar way to access it within a regulated framework,” he added.

While XRP exchange-traded products (ETPs) had been available across various global markets, the launch of a spot XRP ETF in Canada would represent a major development in providing regulated access to the asset.

Meanwhile, several asset management firms filed applications with the U.S. Securities and Exchange Commission (SEC) to launch comparable products, although those filings remain under regulatory review.

Rising Applications Amid U.S. Regulatory Shifts and Price Rally

Applications for crypto exchange-traded funds (ETFs) had increased following the reelection of President Donald Trump and the resignation of SEC Chair Gary Gensler.

Several asset managers, including Grayscale, CoinShares, Bitwise , WisdomTree , and 21Shares, filed for XRP ETFs in the United States as recent regulatory shifts encourage issuers to move forward with their filings.

Other cryptocurrencies, such as Solana, Litecoin , and Dogecoin, also attracted spot ETF applications.

The SEC was expected to render preliminary decisions on these filings by the end of January; Grayscale’s XRP ETF application carried a deadline of January 23, while other applicants awaited decisions by January 25.

Leadership changes at the SEC accelerated these developments, as market participants anticipated a more favorable regulatory stance on crypto-based investment products.

Purpose Investments, which had introduced the world’s first Bitcoin ETF in Canada in 2021, had paved the way for institutional access to crypto.

In contrast, U.S. asset managers had to wait until January 2024 for SEC approval of spot Bitcoin ETFs, which have since amassed over $121 billion in assets.

XRP’s price surged to $3.20 on January 15—its highest level since 2018—before retracing to $3.09 on January 31 and marking a 31% gain for the month.

The rally occurred despite the SEC’s appeal against a July 2023 ruling that determined XRP sales to retail investors were not unregistered securities.

Market observers suggest that an approved XRP ETF could attract between $3 billion and $6 billion in net new investments, assuming adoption rates similar to those of Ethereum ETFs.