XRP ETF Approval: Find Out Which Country Led the Move

XRP ETF Approval in Canada Marks Milestone for Crypto Adoption

TORONTO — In a landmark development for the cryptocurrency sector, Purpose Investments has secured regulatory approval to launch a spot XRP exchange-traded fund (ETF) in Canada. The Purpose XRP ETF, set to begin trading on the Toronto Stock Exchange (TSX) on June 18, 2025, is expected to broaden access to XRP for both institutional and retail investors. The fund will trade under three tickers to cater to different investor preferences: XRPP for CAD-hedged units, XRPP.B for unhedged CAD units, and XRPP.U for USD units.

This move places Canada at the forefront of digital asset innovation in North America. Notably, it becomes the first country in the region to list a spot XRP ETF. Globally, this marks the third spot XRP ETF following similar initiatives by Hashdex in Brazil and 21Shares in Switzerland.

Purpose XRP ETF: What Makes It Different?

The Purpose XRP ETF offers direct exposure to XRP, the digital asset native to the XRP Ledger, unlike derivatives-based products that track futures contracts or synthetic instruments. This means investors will gain actual ownership of XRP held by the fund, adding a layer of transparency and simplicity that appeals to both novice and experienced market participants.

Source: X

Another compelling feature is the ETF’s eligibility for Canadian tax-advantaged accounts, including Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). This integration allows investors to include crypto assets within their long-term wealth management strategies, potentially shielding gains from taxes and making digital asset investing more accessible than ever.

Furthermore, the ETF's availability in both Canadian and U.S. dollar denominations provides flexibility for investors with varying currency preferences, enhancing its appeal to a broad audience.

Market Reaction: XRP Sees Renewed Interest

Following the ETF announcement, XRP experienced a significant surge in market activity. The cryptocurrency saw its price rise over seven percent in a single trading session, reflecting heightened enthusiasm among traders and investors. XRP was recently trading at $2.24, up 3.30 percent on the day, while its trading volume more than doubled compared to the previous 24 hours.

The enthusiasm has sparked conversations across the crypto community about XRP’s future trajectory. Many market watchers believe that institutional interest could propel XRP to new highs, especially as decentralized finance (DeFi) adoption grows and more traditional financial players enter the space.

However, analysts also urge caution. While indicators such as the Moving Average Convergence Divergence (MACD) and trading volumes signal strong momentum, the current relative strength index (CRSI) suggests XRP may be temporarily overbought. This could lead to short-term pullbacks before the asset resumes its upward trend.

Canada Leads as U.S. Lags Behind

Canada’s regulatory green light for the Purpose XRP ETF further underscores the contrasting approaches to crypto asset regulation between Canada and the United States. Despite significant demand, U.S. investors continue to await approval from the Securities and Exchange Commission (SEC) for similar spot XRP products. As of June 2025, at least seven asset managers have submitted proposals for an XRP ETF in the U.S.

Optimism remains high. According to prediction market data from Polymarket, the odds of a U.S. approval for an XRP ETF have climbed to 88 percent, reflecting growing confidence that regulatory acceptance is within reach. A final decision from the SEC is expected by October 17, 2025, a date that is being closely watched by the crypto and broader financial communities alike.

A Signal for the Altcoin Market?

The approval of the Purpose XRP ETF is not merely a win for XRP holders. It signals a broader trend of increasing regulatory acceptance of crypto ETFs, which could pave the way for other leading altcoins to follow suit. The successful launch of this ETF may bolster the case for spot ETFs based on cryptocurrencies such as Solana, Avalanche and Cardano.

If these assets achieve ETF approval, particularly in key markets like the United States, the altcoin space could enter a new phase of mainstream adoption. Analysts predict that this could result in sustained bullish momentum for a wide range of digital assets, as institutional money flows into the sector in search of diversification and innovation.

Industry Experts React

Industry leaders have welcomed the news as a significant step toward integrating digital assets into traditional financial systems. John Mitchell, a digital asset strategist based in Toronto, noted that the approval “demonstrates Canada’s commitment to fostering a forward-thinking regulatory environment for crypto innovation.” He added that “spot ETFs play a vital role in demystifying crypto for traditional investors by offering a familiar, regulated vehicle for exposure.”

Source: Polymarket

Meanwhile, skeptics point out that regulatory approval alone does not shield investors from the volatility inherent in crypto markets. They warn that while ETFs provide safer access, the underlying assets remain subject to rapid price swings driven by market sentiment, technological developments and regulatory changes worldwide.

Looking Ahead: What Could Be Next?

All eyes are now on how the Purpose XRP ETF performs upon launch. Strong initial inflows could encourage other fund managers to accelerate their own plans for crypto-related ETFs in Canada and beyond. The TSX’s embrace of crypto ETFs also raises the question of whether other exchanges in North America will follow suit.

For U.S. investors, the wait for an XRP ETF continues to be a point of frustration and hope. Should the SEC move toward approval later this year, it could open the floodgates for a wave of crypto-related financial products, including ETFs based on additional altcoins and even baskets of digital assets.

Conclusion: A Major Milestone for Crypto Integration

The launch of the Purpose XRP ETF marks a defining moment for the cryptocurrency market’s relationship with mainstream finance. It highlights Canada’s position as a leader in crypto-friendly regulation and provides a new avenue for investors looking to gain exposure to digital assets without navigating the complexities of direct ownership.

While XRP’s price surge reflects optimism, investors are reminded to remain mindful of risks, including market volatility and evolving regulatory landscapes. Still, with this ETF approval, the path appears clearer than ever for crypto assets to earn a permanent place in traditional investment portfolios.

As the crypto industry matures, developments like the Purpose XRP ETF illustrate how digital assets are steadily gaining legitimacy in the eyes of both regulators and investors. The coming months will reveal just how significant this milestone is for XRP, the broader altcoin market and the future of crypto-based investment products.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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