Purpose Investments Seeks Approval to Launch World’s First Spot XRP ETF
Purpose Investments, the Toronto-based firm renowned for launching the world’s first spot Bitcoin ETF, has filed with Canada’s securities regulator to introduce the Purpose Ripple ETF. This proposed exchange-traded fund (ETF) aims to be the first of its kind to hold XRP directly, pending regulatory approval.
Managing over $23 billion in assets, Purpose Investments is expanding its digital asset offerings in response to growing institutional interest in XRP. Som Seif, Founder and CEO of Purpose Investments, stated, “As XRP sees increasing adoption and institutional interest, we believe an ETF can offer investors a transparent and familiar way to access it within a regulated framework.”
The Purpose Ripple ETF intends to provide long-term capital appreciation by holding XRP, which is currently the third-largest cryptocurrency by market capitalization, according to CoinMarketCap. By utilizing ETFs, Purpose Investments seeks to make digital assets more accessible and understandable to traditional investors through familiar investment vehicles.
Vlad Tasevski, Chief Innovation Officer at Purpose Investments, emphasized the significance of the launch, saying, “This represents another important step in our efforts to be the leading and most trusted partner for investors in harnessing the benefits of crypto and digital assets by enabling them to understand, access, and confidently invest in these assets.”
The announcement comes shortly after NYSE Arca submitted a 19b-4 filing to convert Grayscale’s XRP Trust into a spot crypto ETF. This filing includes Coinbase Custody as the custodian and BNY Mellon Asset Servicing as the expected transfer agency. NYSE’s move is part of a broader effort to propose a spot ETF to the U.S. Securities and Exchange Commission (SEC), amid expectations of a more favorable regulatory environment under the current administration.
Since the launch of the Purpose Bitcoin ETF in February 2021—the world’s first ETF to directly hold Bitcoin—the Toronto Stock Exchange has seen Purpose Investments pioneer several digital asset products. The Bitcoin ETF, trading under the BTCC ticker, was established to increase accessibility for retail investors, providing a regulated avenue to participate in the cryptocurrency market.
In contrast, U.S. firms have faced challenges in launching Bitcoin ETFs, with regulatory approvals only granted in January 2024 under SEC Chair Gary Gensler’s tenure. The Purpose Ripple ETF seeks to build on Purpose Investments’ successful track record and capitalize on the increasing demand for regulated cryptocurrency investment options.
If approved, the Purpose Ripple ETF will further diversify Purpose Investments’ digital asset portfolio, following its previous launches of spot Bitcoin and Ether ETFs. This development underscores the growing integration of cryptocurrencies into mainstream financial markets and the ongoing evolution of investment products to meet investor demand.