Canada has achieved a regulatory milestone with the launch of the world’s first spot XRP exchange-traded fund (ETF). Purpose Investments introduced the new product on the Toronto Stock Exchange, offering investors diversified access through CAD-hedged, CAD non-hedged, and USD units.
This approval by the Ontario Securities Commission underscores Canada’s progressive stance towards cryptocurrency investment products, providing a regulated avenue for exposure to XRP.
The development stands in stark contrast to the situation in the United States. Approval for a similar XRP ETF remains uncertain due to the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The SEC’s lawsuit, alleging XRP is an unregistered security, continues to hinder progress despite a 2023 court ruling partially favoring Ripple.
Investor sentiment reflects this regulatory divergence, with XRP experiencing price volatility. Analysts note cautious optimism regarding potential future shifts in U.S. regulatory posture.
The successful Canadian launch is seen as potentially influencing U.S. regulators and accelerating discussions around XRP ETFs. Such approvals could unlock significant capital inflows and enhance market liquidity for the digital asset.