The Ripple community is currently buzzing with anticipation around the first-ever spot XRP exchange-traded fund (ETF) from Purpose Investment going live in Canada on June 18. This also marks the first XRP ETF launch on the Toronto Stock Exchange (TSX), further paving a way for mainstream adoption of cryptocurrency.
As per the official release, the XRP ETF from Purpose will be available in CAD-hedged (ticker XRPP), CAD non-hedged (ticker XRPP.B), and US dollar (ticker XRPP.U) units. Investors will only be eligible to hold these ETFs in their registered accounts, such as TFSAs and RRSPs.
While the crypto industry’s attention on Ripple and XRP is increasing day by day, this move reinforces Canada’s progressive stance on crypto regulations. This launch builds on Purpose Investments’ legacy, as the firm was also responsible for filing the world’s first spot Bitcoin ETF in 2021.
The move, backed by final regulatory approval from the Ontario Securities Commission (OSC), underscores Canada’s leadership in providing regulated access to digital assets. It also raises questions about when the United States might follow suit, where regulatory hurdles have slowed such similar initiatives, despite the country being a leader in the crypto space.
When Will the U.S. Approve Spot XRP ETFs?
XRP has been at the center of a contentious legal battle with the U.S. Securities and Exchange Commission (SEC) since 2020, which alleged it was an unregistered security. This partial victory for Ripple in 2023 affirmed XRP’s non-security status on retail exchanges, but it has not pushed anything far beyond for XRP-based ETFs.
Out of nine filings, none of the issuers—including Bitwise, Canary Capital, 21 Shares, Grayscale, WisdomTree, CoinShares, Volatility Shares, ProShares, and Franklin Templeton—have gained approval in the U.S., leaving investors and analysts speculating on the potential approval timeline.
Adding intrigue, Franklin Templeton Investments is awaiting a decision today, June 17, on its application for a spot XRP ETF. This coincidence—Franklin Templeton’s decision followed by the Purpose’s launch—heightens the stakes, with some viewing it as a potential catalyst for U.S. regulatory action.
While the crypto community was expecting a potential dismissal in the long-standing Ripple-SEC lawsuit on June 16, the decision is now delayed till August. A positive outcome on this ruling would have pushed Ripple toward the stronger side, eventually clearing the pathway for XRP ETFs. However, it has now driven mixed reactions in the market, with the XRP price surging nearly 11% from the weekly low before pushing back to the same levels.
On the optimistic side, various analysts are expecting the SEC’s likely decision to drop its appeal, which will magnify discussions on the XRP ETF. Moreover, the launch of the first XRP ETF in Canada could highly influence the SEC’s decision to approve one of the nine ETFs—or even all at once—in the coming months.
Also read: Purpose XRP ETF Set to Launch on June 18
