Canada Debuts First XRP Spot ETF Amid $24B Crypto Push—Is the SEC Falling Behind?

18/06/2025 admin

Key Takeaways:

Purpose Investments launches Canada’s first XRP spot ETF (XRPP) on the Toronto Stock Exchange.
The ETF provides direct exposure to XRP with CAD-hedged, CAD, and USD unit options.
Institutional-grade custody, tax-advantaged accounts, and mainstream access mark a major leap for crypto ETFs in Canada.

Canada has officially entered the XRP ETF arena. On June 18, 2025, Purpose Investments—already a pioneer in the digital asset space—launched the country’s first spot XRP exchange-traded fund (ETF), expanding its crypto ETF lineup and intensifying global pressure on U.S. regulators still lagging behind.

XRP ETF Hits TSX: A New Chapter for Regulated Crypto Investing

The Purpose XRP ETF (ticker: XRPP) began trading Wednesday on the Toronto Stock Exchange (TSX), offering Canadian investors direct spot exposure to XRP—one of the most utilized crypto assets for real-world financial transactions. The ETF is available in three formats:

CAD-Hedged (XRPP)
CAD Non-Hedged (XRPP.B)
USD (XRPP.U)

This makes it the first-ever regulated product in North America to provide institutional and retail access to XRP through a fully compliant, transparent, and publicly traded investment vehicle.

According to Vlad Tasevski, Chief Innovation Officer at Purpose Investments, demand for XRP was among the highest among the firm’s clients. “XRP is uniquely positioned for global payments,” he said, emphasizing its fast transaction speeds and low fees.

Why XRP? Use-Case Matters in a Crowded Crypto Market

Real Utility Over Speculation

XRP, the native token of the XRP Ledger (XRPL), has long stood apart in the crypto market for its focus on cross-border payments. Built as a decentralized, scalable blockchain, XRPL facilitates real-time gross settlement and foreign exchange transactions, often used by global banks and payment networks.

Unlike many cryptocurrencies still navigating their practical use cases, XRP’s enterprise adoption is well-documented. With transaction speeds under 5 seconds and fees averaging fractions of a cent, XRP solves a core inefficiency in the global financial infrastructure.

Purpose’s ETF capitalizes on this distinct positioning, offering a simplified on-ramp for traditional investors looking to tap into the digital asset’s utility—without needing to hold wallets or interact with exchanges.

Inside the XRP ETF: Features Tailored for the Canadian Investor

Purpose’s approach to product design reflects its experience managing over $24 billion in assets and pioneering regulated crypto investment in Canada. Here are key highlights of the XRP ETF:

Direct Spot Exposure to XRP
Investors own actual XRP, not derivatives or synthetic assets, ensuring price correlation to the underlying asset.
CAD-Hedged and USD Options
Currency risk is mitigated for Canadian investors through a CAD-hedged unit—currently the only XRP ETF in Canada offering this feature.
Institutional-Grade Custody
Assets are held in cold storage with Gemini and Coinbase, two of the industry’s most trusted custodians.
Eligibility for Registered Accounts
The ETF can be held in Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs)—a major advantage over self-custody.
Advisor-Ready Structure
Designed to be easily integrated into diversified portfolios via traditional brokers and wealth platforms.

This turnkey structure aims to remove the common barriers to crypto investing: security concerns, technical complexity, and tax inefficiencies.

Canada Advances, U.S. Stalls: Global Implications of XRP ETF Approval

While Purpose breaks ground in Canada, regulators in the United States continue to hesitate. The U.S. Securities and Exchange Commission (SEC) has not approved any XRP-based investment product, despite repeated filings from Grayscale, Bitwise, and others.

In contrast, Brazil approved the world’s first XRP ETF in April 2025—traded under the ticker XRPH11 on the B3 Exchange, tracking the Nasdaq XRP Reference Price Index. Now, with Canada entering the field, North America’s second-largest market has effectively leapfrogged the U.S. in XRP-based regulatory clarity.

Purpose’s move reinforces a broader trend: progressive jurisdictions are capitalizing on regulatory openness to attract crypto capital and innovation. As U.S. ETF issuers continue to wait for SEC approval, Canada and Brazil are building infrastructure that bridges traditional finance with blockchain technologies.

Crypto ETFs: A Growing Ecosystem in Canada

Purpose is not new to pushing digital asset boundaries. The firm previously launched:

Purpose Bitcoin ETF (BTCC) – the world’s first spot Bitcoin ETF
Purpose Ether ETF (ETHH) – direct exposure to ETH
Purpose Solana ETF (SOLL) – staking-enabled Solana ETF
Purpose Core and Yield ETFs – optimized for low-cost or income-generating crypto investing

The launch of XRP makes Purpose the most diversified digital asset ETF provider in Canada, with products tailored for both passive and tactical strategies. From staking to yield to the nascence of currency-hedged options, the platform embodies a full-stack investment thesis around digital assets.

Institutional Adoption and Maturity of the XRP Ecosystem

The return of XRP to mainstream finance continues, supported by more institutional interest in the wake of Ripple’s partial legal win in its lawsuit against the SEC last year. The decision that sales of XRP on the public exchanges didn’t constitute securities reopened doors for regulated investment—bringing new hope around the global for a XRP ETF.

XRP is trading at about $2.10 as of press time after jumping 8% earlier this week on the ETF launch news, then backed off a bit amid general market volatility. The XRP ETF launch should further cement interest in XRP to lock it to traditional capital flow through stock exchanges.

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