The race to launch the world’s first spot XRP ETF has intensified, with Canadian asset manager Purpose Investments taking a bold step forward. The firm has officially submitted a preliminary prospectus to Canadian securities regulators, aiming to debut a Purpose Ripple (XRP) ETF—potentially beating U.S.-based contenders awaiting approval from the Securities and Exchange Commission (SEC).
This move positions Canada at the forefront of cryptocurrency innovation, particularly in regulated financial products. While U.S. firms were the first to file for spot XRP ETFs, Canada’s historically faster approval process for crypto ETFs could allow Purpose Investments to launch before its American counterparts.
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Purpose Investments Aims for First-Mover Advantage in XRP ETF Race
Purpose Investments, known for launching North America’s first spot Bitcoin and Ethereum ETFs on the Toronto Stock Exchange in 2021, is leveraging its experience to pioneer the next wave of crypto adoption. The proposed Purpose Ripple ETF would primarily hold long-term positions in XRP, offering investors a transparent, regulated way to gain exposure to the digital asset.
“With growing institutional interest and real-world adoption of XRP, an ETF provides a trusted vehicle for mainstream investors,” said Som Seif, founder and CEO of Purpose Investments. “We believe this product will meet rising demand for accessible, compliant crypto investment options.”
Unlike unregulated crypto exchanges or futures-based products, an ETF offers oversight, liquidity, and integration into traditional brokerage accounts—making it appealing to conservative and institutional investors alike.
Although spot XRP exchange-traded products (ETPs) already exist in parts of Europe, a North American-listed ETF would represent a significant milestone. It could boost market confidence, increase trading volume, and potentially influence regulatory sentiment globally.
Meanwhile, five major U.S. asset managers—including Grayscale, Bitwise, Canary Capital, WisdomTree, and 21Shares—have all filed applications for spot XRP ETFs. However, the SEC has yet to issue a formal response, leaving approval timelines uncertain.
Canada’s more permissive regulatory environment—especially regarding digital asset ETFs—gives Purpose a strategic edge. If approved, the fund could begin trading on the TSX within months, setting a precedent that U.S. regulators may eventually follow.
Why Canada Could Beat the U.S. in the XRP ETF Approval Race
The contrast between Canadian and U.S. regulatory approaches to crypto ETFs is stark. Canada has consistently moved faster in approving cryptocurrency-based financial products:
- The first spot Bitcoin ETF launched in Canada in February 2021.
- The first spot Ethereum ETF followed just two months later.
- Both gained strong investor traction and are now widely available through major brokerages.
This track record suggests that Canadian regulators prioritize innovation while maintaining investor protection—a balanced approach that has attracted global attention.
In contrast, the SEC has maintained a cautious stance, often citing concerns over market manipulation, custody issues, and lack of regulatory clarity. While these concerns are valid, they’ve led to prolonged review periods—even after favorable court rulings, such as Ripple Labs’ partial victory against the SEC in 2023.
Polymarket data shows growing optimism: the odds of a U.S. spot XRP ETF approval now stand at 82%, reflecting heightened market expectations. Yet even if the SEC begins reviewing filings soon, the process could take several more months—or longer.
Purpose Investments’ proactive filing means Canada could become home to the world’s first spot XRP ETF, reinforcing its status as a leader in crypto finance.
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XRP Price Outlook: Key Technical Levels to Watch
Amid the regulatory developments, XRP’s price action remains closely watched by traders and analysts. As of the latest data, XRP is consolidating within a descending channel that began forming on January 15.
On the 4-hour chart, bearish momentum dominates, with both the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) trading below neutral levels—signals typically associated with downward pressure.
Support and Resistance Levels
- Immediate support lies near $2.62, which could act as a floor if XRP breaks below the lower boundary of the descending channel.
- A sustained break above the upper channel line—and subsequent retest as support—could trigger a rally toward $3.55, XRP’s all-time high.
- Conversely, a daily candlestick close below $2.33 would invalidate the current bullish structure and open the door for further downside.
Market sentiment remains mixed. Positive catalysts—like a Canadian ETF approval or favorable SEC developments—could fuel upward momentum. However, delays or regulatory pushback could prolong consolidation or lead to deeper corrections.
Investors should monitor volume patterns, on-chain activity, and macroeconomic factors such as interest rates and risk appetite in traditional markets—all of which influence crypto valuations.
Frequently Asked Questions (FAQs)
What is an XRP ETF?
An XRP ETF (exchange-traded fund) is a regulated investment product that tracks the price of XRP without requiring investors to directly hold the cryptocurrency. It trades on traditional stock exchanges and offers exposure through brokerage accounts.
How does a spot XRP ETF differ from futures-based products?
A spot ETF holds actual XRP tokens as underlying assets, providing direct price exposure. In contrast, futures-based ETFs track derivative contracts, which can deviate from spot prices and carry additional risks like contango or roll yield.
Why is Canada moving faster than the U.S. on crypto ETFs?
Canada’s securities regulators have adopted a more innovation-friendly framework with clear guidelines for crypto custody and transparency. This enables faster reviews and approvals compared to the U.S., where the SEC applies stricter standards and often seeks congressional clarity.
Can U.S. investors access a Canadian XRP ETF?
While technically possible through international brokerage accounts, access may be limited by compliance rules and tax reporting requirements. Most U.S. investors await domestic ETF options for seamless integration into retirement accounts (like IRAs) and tax-advantaged portfolios.
What impact could an XRP ETF have on price?
Historically, spot ETF launches have led to increased demand and price appreciation—for example, Bitcoin’s rise following Canadian ETF approvals in 2021. A successful XRP ETF could attract institutional capital, improve liquidity, and strengthen long-term valuation fundamentals.
Is XRP considered a security?
In July 2023, a U.S. district court ruled that XRP is not a security when sold to retail investors on exchanges—a partial win for Ripple Labs in its legal battle with the SEC. However, the SEC continues to appeal aspects of the decision, keeping some regulatory uncertainty alive.
Final Thoughts: A Pivotal Moment for XRP Adoption
The push for a spot XRP ETF marks a pivotal moment in the maturation of digital assets within traditional finance. Purpose Investments’ bold move underscores growing confidence in XRP’s utility and compliance potential.
While U.S. issuers wait for regulatory clarity, Canada stands poised to lead once again in crypto innovation. If approved, the Purpose Ripple ETF could become a benchmark for global adoption—offering secure, regulated access to one of the most widely used digital assets in cross-border payments.
As markets evolve and investor demand grows, the lines between traditional finance and blockchain technology continue to blur. Whether through ETFs, stablecoins, or decentralized infrastructure, assets like XRP are helping shape the future of value transfer.
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