Purpose Investments, a Canadian asset management firm, has proposed the first exchange-traded product (ETF) based on the spot value of Ripple (XRP). This move follows their success with the first Bitcoin and Ether ETFs.
The firm has submitted the necessary documents to Canadian securities regulators to launch the Purpose Ripple ETF. This ETF aims to invest in long-term XRP holdings, providing a new way for investors to access this digital asset legally.
Som Seif, the CEO of Purpose Investments, highlighted the company’s goal of bridging traditional finance with decentralized finance. He mentioned that XRP is gaining popularity and institutional interest. An ETF would offer a clear and familiar method for investors to engage with XRP.
Interest in crypto ETFs is rising. Many firms have filed for similar products recently, including Grayscale, CoinShares, Bitwise, WisdomTree, and 21Shares in the United States. As regulations evolve, industry leaders expect to launch more crypto products by 2025, enhancing institutional access to digital assets.
In the U.S., changes at the SEC have created a better environment for crypto ETFs. The resignation of SEC Chair Gary Gensler has encouraged firms to continue with their ETF applications.
However, the SEC is not expected to make preliminary decisions on these filings until late January 2025. Grayscale’s XRP ETF application deadline is January 23, 2025, while others are due for decisions by January 25, 2025.
Purpose Investments previously launched the world’s first Bitcoin ETF in Canada. The firm aims to provide institutional investors with a regulated entry into the crypto market. In contrast, the U.S. had to wait until January 2024 for its spot Bitcoin ETFs to be approved, which have since seen significant asset growth. Purpose Investments is committed to expanding access to digital assets through regulated products.
