Purpose Investments, a leading asset management firm, has lodged a preliminary prospectus with Canadian regulatory authorities, outlining its plans for a groundbreaking Ripple (XRP) exchange-traded fund (ETF). This move is a significant step in the company’s ambition of launching the first-ever spot XRP ETF worldwide.
This isn’t Purpose’s debut in the crypto ETF arena. The company pioneered the issuance of spot Bitcoin and Ethereum ETFs, which made their debut on the Toronto Stock Exchange in February and April of 2021, respectively. Although XRP exchange-traded products (ETPs) have already made a mark globally, Purpose is aiming to add another feather to its cap by offering the premier spot XRP ETF, as per their Thursday statement.
The proposed ETF is designed primarily for long-term investments in XRP, with a focus on generating long-term capital gains for ETF unit holders. Purpose Investments reiterated its dedication to innovation and bridging the gap between traditional and decentralized finance.
According to Purpose Investments CEO, Som Seif, “As XRP attracts more institutional interest and user adoption, we believe an ETF can provide investors a transparent and familiar method to access it within a regulated framework.”
While several US-based asset management firms, including Grayscale, Bitwise, Canary Capital, WisdomTree, and 21Shares, have also applied to the U.S. Securities and Exchange Commission for spot XRP ETFs, Canadian regulators typically approve ETFs faster, particularly cryptocurrency ETFs. This difference in regulatory pace may give Purpose Investments the edge in achieving its goal.
However, the advent of a more crypto-friendly administration in the U.S., along with the likely confirmation of a pro-crypto SEC Chair, Paul Atkins, could potentially hasten the U.S. crypto ETF approval process.
European exchanges already host an XRP ETP from 21Shares (AXRP) and a European XRP ETP from Bitwise (GXRP), which offers secure custody solutions for XRP. Regulatory variances cause crypto investment vehicles in Europe to be structured as ETPs rather than ETFs.
Vlad Tasevski, Purpose’s Chief Innovation Officer, emphasized the company’s commitment to “providing exposure to transformative digital assets and blockchain technologies through regulated investment vehicles.”
Please note: This article is intended for informational purposes only and should not be taken as legal, tax, investment, financial, or other advice.
