Canada has made history by becoming the first country to approve a spot XRP ETF, outpacing the U.S. in the race for altcoin ETF adoption. Purpose Investments received regulatory approval from the Ontario Securities Commission (OSC) to launch its XRP ETF (XRPP), set to debut on the Toronto Stock Exchange on June 18.
Key Features of Purpose XRP ETF
- Ticker Symbol: XRPP
- Currency Options: CAD-hedged, CAD-unhedged, and USD
- Tax Advantages: Eligible for registered accounts like TFSA and RRSP
- Trading Start Date: June 18, 2024
Vlad Tasevski, Chief Innovation Officer at Purpose Investments, emphasized Canada’s leadership in regulated digital assets:
"The OSC’s approval solidifies Canada’s role as a pioneer in blockchain adoption. We’re committed to providing secure, accessible infrastructure for investors."
XRP Price Reaction and Market Sentiment
Following the announcement, XRP surged nearly 7% within 24 hours, briefly outperforming Bitcoin (BTC). However, it later corrected by 3.49%, trading at $2.15 at press time.
On-Chain Activity Highlights:
- 700% increase in Ripple’s network activity.
- Growing accumulation by large wallets.
- Polymarket predicts a 90% chance of U.S. approval within a year.
👉 Why XRP’s ETF approval could reshape crypto markets
Regulatory Divergence: U.S. vs. Canada
While Canada advances, the U.S. SEC remains cautious:
- Extended review timeline for Franklin Templeton’s proposed SOL and XRP ETFs to late 2025.
- Focus on compliance and investor safeguards.
Analysts suggest the delay reflects the SEC’s deliberate approach but note strong institutional interest in XRP’s long-term potential.
FAQ
1. What is the significance of Canada’s XRP ETF approval?
It positions Canada as a leader in regulated crypto ETFs, offering investors a compliant way to gain XRP exposure.
2. How does this impact XRP’s price?
Short-term volatility is expected, but increased institutional adoption could drive sustained growth.
3. Will the U.S. approve an XRP ETF soon?
Polymarket data suggests high likelihood (90%) within 12 months, though SEC timelines remain uncertain.
4. What are the risks of investing in XRP ETFs?
Regulatory shifts and market sentiment can cause price fluctuations. Diversification is advised.
5. How does XRP’s on-chain activity look?
Network engagement has spiked, signaling bullish momentum for Q3 2024.
Conclusion
Canada’s landmark approval sets a precedent for XRP ETF adoption, with the U.S. potentially following suit. Investors should monitor:
- SEC decisions on pending ETF applications.
- On-chain metrics for accumulation trends.
- Global regulatory shifts in crypto ETFs.