The talk of Canada beating the United States to become the first North American country to approve and launch spot XRP exchange-traded funds (ETFs) is heating up the crypto space. Two Canadian asset managers, 3iQ and Purpose Investments, began trading their XRP ETFs on the Toronto Stock Exchange (TSX) today.
These funds were created to give investors exposure to the fourth-largest cryptocurrency by market cap without them needing to manage it directly. The 3iQ XRP ETF trades under the ticker XRPQ, while Purpose’s fund trades under XRPP, XRPP.B, and XRPP.U for different currency exposures.
3iQ confirmed that Ripple, the company behind the XRP cryptocurrency, is an early investor in its fund. The ETF comes with a six-month 0% management fee and stores its holdings in secure cold storage. Purpose’s ETFs offer direct access to XRP through registered investment accounts like RRSPs and TFSAs, making it accessible and tax-efficient for Canadian investors.
The ETFs were launched based on interest from institutional investors who are looking to cash out on the growth of the digital assets, especially for products that offer regulatory clarity and secure custody. Additionally, both ETFs are not only available to Canadian investors but also to certain international investors, depending on local rules.
Meanwhile, the U.S is still waiting for regulatory approval of XRP ETFs. Some institutions like Franklin Templeton, Bitwise, Grayscale, and ProShares have filed applications, but they are all still under review
Franklin Templeton’s XRP ETF deadline for approval was yesterday, June 17, but it was extended. ProShares XRP ETF’s deadline is coming close with just 2 weeks away, but the crypto community is already questioning if the SEC would also delay its decision on the product.
Experts believe the U.S might miss its chance to benefit from this opportunity if it waits too long. Global investors could turn to friendlier markets like Canada instead. According to Paul Grewal, Coinbase’s CLO on X “It’s way past time for the US to catch up and get crypto market structure legislation done.”
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