Canada Approves First XRP Spot ETF: Trading Starts June 18

Canada is set to make a significant stride in cryptocurrency investment with the approval of the first XRP spot exchange-traded fund (ETF). Purpose Investments, a leading asset manager known for pioneering the world’s first spot Bitcoin ETF, has received regulatory clearance from the Ontario Securities Commission (OSC) to launch its Purpose XRP ETF. 

Trading will commence on June 18, 2025, on the Toronto Stock Exchange (TSX) under the ticker symbol XRPP. This development marks a major milestone for Canadian cryptocurrency markets, providing investors with a regulated and accessible way to gain direct exposure to XRP, the digital asset powering the XRP Ledger. The ETF will be available in multiple currency options, including Canadian dollar-hedged, non-hedged, and U.S. dollar units, catering to diverse investor preferences.

Canada’s XRP Spot ETF Approval: A Regulatory Milestone

The approval of the Purpose XRP ETF by the OSC underscores Canada’s leadership in creating a secure and regulated environment for digital asset investment. Unlike derivative-based ETFs, this fund holds actual XRP tokens, offering investors direct spot exposure. This is particularly notable as it is the first spot XRP ETF to receive approval in North America, setting a precedent for other markets to follow. 

The ETF’s acceptance into registered accounts such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) further integrates cryptocurrency into traditional investment frameworks, making it easier for Canadians to diversify their portfolios with digital assets.

Vlad Tasevski, Chief Innovation Officer at Purpose Investments, highlighted that this regulatory nod reflects Canada’s progressive stance on digital assets and its commitment to providing secure access to blockchain technologies. The launch follows the successful introduction of spot Bitcoin and Ether ETFs by Purpose Investments, reinforcing the country’s position as a global leader in regulated crypto investment products.

Understanding the Purpose XRP ETF and Its Investment Options

The Purpose XRP ETF is designed to offer investors straightforward access to XRP without the complexities of directly purchasing and storing the cryptocurrency. The fund will be available in three distinct units:

• XRPP: CAD-hedged units, protecting Canadian investors from currency fluctuations
   
• XRPP.B: CAD non-hedged units, for those comfortable with currency exposure
   
• XRPP.U: U.S. dollar units, catering to investors preferring USD exposure
   

This structure provides flexibility, allowing investors to choose the currency exposure that best fits their investment strategy. Additionally, the ETF’s eligibility for registered accounts such as TFSAs and RRSPs offers tax advantages, encouraging broader adoption among Canadian retail investors. The ETF’s underlying asset, XRP, is known for its fast and cost-efficient cross-border payment capabilities, which adds a practical use case to its investment appeal.

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Market Impact and XRP’s Performance Ahead of ETF Launch

The announcement and imminent launch of the Purpose XRP ETF have already influenced market sentiment positively. XRP’s price surged nearly 7% in the 24 hours following the regulatory approval news, outperforming Bitcoin and other major cryptocurrencies. At the time of the announcement, XRP’s price climbed above the $2.30 mark, signaling renewed investor confidence and interest.

This price movement also coincides with ongoing developments in the Ripple versus U.S. Securities and Exchange Commission (SEC) legal case, which has been closely watched by investors worldwide. The prospect of regulatory clarity in the U.S. adds to the bullish sentiment surrounding XRP, making the ETF launch in Canada a timely event that could further boost XRP’s adoption and market presence.

Opportunities and Risks for Canadian Investors

The launch of the first XRP spot ETF in Canada presents several opportunities for investors. It offers a regulated, transparent, and convenient way to gain exposure to XRP without the need for direct cryptocurrency wallets or exchanges. The ETF’s inclusion in registered accounts enhances its appeal by providing tax efficiency and portfolio diversification options.

However, investors should also consider the inherent risks associated with cryptocurrency investments. XRP’s price can be volatile, influenced by regulatory developments, market sentiment, and broader economic factors. While the ETF structure mitigates some risks related to custody and security, market fluctuations remain a factor. Additionally, the ongoing Ripple-SEC legal case introduces an element of uncertainty that could impact XRP’s long-term outlook.

Conclusion

Canada’s approval of the first XRP spot ETF marks a pivotal moment in the integration of cryptocurrency within mainstream financial markets. Purpose Investments’ ETF launch on June 18, 2025, offers Canadian investors a regulated, accessible, and flexible way to invest in XRP. With multiple currency options and eligibility for tax-advantaged accounts, this ETF is poised to broaden digital asset adoption in Canada. 

While the market has responded positively with a notable price increase, investors should balance the opportunities with the risks inherent in cryptocurrency markets. This development reinforces Canada’s position as a leader in regulated crypto investment and may pave the way for similar products globally.

FAQ

What is the Purpose XRP ETF?
The Purpose XRP ETF is an exchange-traded fund approved in Canada that provides investors with direct exposure to the XRP cryptocurrency through a regulated investment vehicle. It holds actual XRP tokens rather than derivatives.

When will the XRP ETF start trading?
Trading begins on June 18, 2025, on the Toronto Stock Exchange under the ticker symbol XRPP.

What currency options are available for the ETF?
The ETF offers three unit options: CAD-hedged (XRPP), CAD non-hedged (XRPP.B), and U.S. dollar units (XRPP.U), allowing investors to choose their preferred currency exposure.

Can I hold the XRP ETF in registered accounts?
Yes, the ETF is eligible for Canadian registered accounts such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), providing tax advantages.

How has XRP’s price reacted to the ETF approval?
XRP’s price increased nearly 7% following the announcement, reflecting positive market sentiment ahead of the ETF launch.

What are the risks of investing in the XRP ETF?
Risks include cryptocurrency market volatility, regulatory uncertainties, and the ongoing Ripple-SEC legal case, which may affect XRP’s future value.

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