Canada’s Purpose Investments is set to debut the world’s first spot XRP exchange-traded fund (ETF) on June 18, 2025, after receiving regulatory approval from the Ontario Securities Commission. The ETF will trade on the Toronto Stock Exchange (TSX), offering direct exposure to XRP, a leading cryptocurrency. This milestone reinforces Canada’s leadership in crypto-friendly financial products and broadens investment opportunities for institutional and retail investors.
Canada Pioneers the First Spot XRP ETF
Canada continues to spearhead innovation in digital asset investments, having previously approved the first spot Bitcoin and Ethereum ETFs. The newly approved Purpose XRP ETF solidifies this reputation, marking the first North American spot ETF for XRP.
👉 Discover how XRP’s price surged 7% post-announcement
Purpose Investments, the fund’s manager, is no stranger to groundbreaking products—it launched the world’s first Bitcoin ETF in 2021. The firm’s expansion into XRP reflects growing demand for regulated crypto investment vehicles.
ETF Structure and Trading Details
The Purpose XRP ETF will list under three ticker symbols:
| Ticker | Description |
|---|---|
| XRPP | CAD-hedged shares |
| XRPP.B | Unhedged CAD shares |
| XRPP.U | USD-denominated shares |
Key Features:
- Available through registered accounts (e.g., RRSPs, TFSAs).
- Provides direct exposure to XRP’s spot price without requiring investors to hold the asset.
- Appeals to both retail and institutional investors seeking simplified crypto access.
Market Impact and Investor Sentiment
Following the announcement, XRP’s price surged ~7%, signaling strong market optimism. Analysts attribute this to:
1. Enhanced Legitimacy: Regulatory approval boosts confidence in XRP as an asset class.
2. Accessibility: Investors gain exposure via traditional brokerage accounts.
Unlike futures-based ETFs, spot ETFs track the real-time price of the underlying asset, eliminating complexities like contango.
👉 Learn why Canada outpaces the U.S. in crypto ETF approvals
Canada vs. U.S.: A Regulatory Contrast
While Canada forges ahead, the U.S. SEC has delayed decisions on XRP ETFs, citing regulatory uncertainties. This divergence highlights Canada’s progressive stance on crypto adoption, attracting global investors.
Why Canada?
- Clear Regulations: Proactive frameworks for digital assets.
- First-Mover Advantage: Early approvals for Bitcoin, Ethereum, and now XRP ETFs.
FAQs About the Purpose XRP ETF
1. When does the XRP ETF start trading?
The ETF launches on June 18, 2025, on the TSX.
2. How does a spot XRP ETF differ from futures-based ETFs?
Spot ETFs hold actual XRP, mirroring its market price, while futures ETFs track contracts tied to future prices.
3. Can U.S. investors buy this ETF?
Currently, the ETF is only available in Canada. U.S. investors must wait for SEC approval of a similar product.
4. What are the tax implications?
Holdings in registered accounts (RRSP/TFSA) are tax-deferred or tax-free, depending on the account type.
5. Why is this ETF significant for XRP?
It validates XRP as a mainstream investment, potentially increasing liquidity and adoption.
6. How does Purpose Investments safeguard the XRP holdings?
The ETF’s custodian stores XRP in cold storage to minimize hacking risks.
Conclusion
The Purpose XRP ETF represents a pivotal moment for cryptocurrency adoption, combining regulatory credibility with investor convenience. As Canada cements its role as a crypto innovation hub, global markets may follow suit.
Stay tuned for updates on how this ETF reshapes XRP’s market dynamics and influences broader crypto ETF trends.