Canada Leads with the World’s First Spot XRP ETF

Purpose Investments has filed for the world’s first spot XRP ETF.
Canada’s approval could prompt US authorities to expedite approval.

The offering will launch the first spot XRP exchange-traded fund (ETF). This is an NFT, or non-fungible coin, as specified in Purpose Investments‘ initial prospectus filed with authorities, and if this product clears the regulatory obstacle, it will do so in a completely transparent, controlled manner, revealing XRP to the world.

Purpose Investments is one of Canada’s largest asset managers, with about $23 billion in assets. It’s not new to innovative digital asset products. Last year, the company was the first issuer in 2021 to introduce spot Bitcoin and Ethereum ETFs in Canada before it happened in the US. Now, as the XRP market is increasingly gaining institutional interest, Purpose hopes to be the first to bring a spot XRP ETF to market, ahead of US competitors who are still waiting for the Securities and Exchange Commission (SEC) to grant them approval.

Canada’s Fast-Track Approach to Crypto ETFs

The Ontario Securities Commission (OSC) approved the first spot Bitcoin ETF in the world in February 2021- months before that happened in January 2024 in the United States. Following a similar model, Purpose’s XRP ETF may hit markets before filings in the United States from firms including Grayscale, Bitwise, and WisdomTree, all awaiting SEC approval.

Som Seif, the CEO of Purpose, emphasized the goal that the Purpose investment company pursues, bridging traditional finance with decentralized assets. “As XRP gains institutional traction, we believe an ETF offers investors a transparent way to access it within a regulated framework,” Seif said.

Institutional demand in XRP has been growing with the $175 billion market cap of the digital asset and its capability of utilizing it to settle cross-border transactions. Despite all this, the lawsuit between Ripple and the SEC is still an issue, and without a resolution, an American XRP ETF is not confirmed in the timeline.

Market optimism for XRP is growing, and Polymarket currently gives a probability of 82% that a US XRP ETF will be cleared under a potentially friendly administration.

XRP has become trading around $3.05 after Purpose’s application, with analysts saying it could reach an all-time high of $3.55 if it manages to stay above $3.00.

If the Canadian regulators approve the XRP ETF by Purpose, it would likely push US regulators to fast-track similar applications. As XRP’s popularity soars, the question is no longer if, but when an XRP ETF will launch.

Source: https://www.livebitcoinnews.com/canada-leads-with-the-worlds-first-spot-xrp-etf/