According to the source, Canada has become the first country to have a spot in XRP ETF, an essential milestone in the regulated integration of digital assets into traditional markets.
The approval comes amid growing institutional interest in XRP-backed products. However, similar efforts are unavailable in the U.S. because of outstanding legal issues.
Why Canada Took the Lead
The regulatory framework of Canada has repeatedly demonstrated that it is quicker to yield to demand for crypto-based investable. It has also pioneered spot Bitcoin and Ether approvals during the age of futures-only debate by the U.S. What spot XRP does for Canada once more is make it the first ahead of others.
Purpose Investments got the green light from the Ontario Securities Commission (OSC), having undergone scrutiny over the last months. The ETF itself will have three flavors:
- XRPP: CAD-denominated, hedged
- XRPP.B: CAD-denominated, unhedged
- XRPP.U: USD-denominated, unhedged
This allows investors to choose their currency preference and hedge. Each is eligible for registered accounts such as RRSP and TFSA, making the spot XRP ETF broadly available to retail and institutional investors.
U.S. Stuck in Legal Gridlock
In contrast, U.S.-based applications remain on hold due to the ongoing legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). A joint motion has paused the case until August 15, 2025, with settlement discussions ongoing. This has delayed products like Franklin Templeton’s proposed XRP ETF, among others.
Canada’s decision to move forward while the U.S. holds back is seen as a strategic regulatory lead. According to the source, the approval positions Canada as an active market for regulated crypto exposure, especially as the U.S. navigates legal uncertainty.
Why the Spot XRP ETF Matters
A spot XRP ETF allows investors to gain direct exposure to XRP without managing wallets or dealing with digital exchanges.
Unlike futures-based ETFs, which are often subject to price distortions and added fees, spot ETFs track the actual market price of the asset. This results in a more transparent and efficient investment vehicle.
Launching a spot, XRP ETF also signals growing confidence in XRP’s long-term utility, especially in cross-border payments. Ripple’s blockchain technology has already been adopted by various financial institutions globally, and a regulated ETF only strengthens the case for mainstream acceptance.
Moreover, ETFs listed on traditional stock exchanges add an extra layer of security and regulatory oversight, attracting conservative investors who may have hesitated to enter the crypto space.
Potential Impact on Global Markets
The launch may set a precedent for other countries exploring regulated exposure to digital assets. While the U.S. continues to wait, Canada’s move could shape investor sentiment and drive further demand for similar crypto-backed instruments globally.
Conclusion
This launch of the first spot XRP ETF approved in Canada indicates increased confidence in regulated crypto assets and investments while the U.S. watches for legal clarity. Canada is taking the lead with an alternative way of investing in digital assets through the traditional markets.
FAQs
What is a spot XRP ETF?
A spot XRP ETF is a fund that tracks the current price of XRP, allowing investors to gain direct exposure without holding the token themselves.
When does the ETF start trading?
The ETF begins trading on June 18, 2025, on the Toronto Stock Exchange.
Is the ETF available to U.S. investors?
The product is listed in Canada but offers a USD-denominated version, potentially making it accessible to U.S. investors through certain brokerages.
Why hasn’t the U.S. approved a similar ETF?
Ongoing legal proceedings between Ripple Labs and the SEC have delayed the approval of any spot XRP ETF in the United States.
Glossary
ETF (Exchange-Traded Fund): A type of investment fund traded on stock exchanges, much like stocks.
Spot Market: A market where financial instruments or commodities are traded for immediate delivery.
OSC (Ontario Securities Commission): Ontario, Canada’s regulatory body overseeing securities laws.
RRSP / TFSA: Registered savings and investment accounts in Canada with tax advantages.
Sources
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