Canadian Firms Launch XRP ETFs, Beating US Regulators to the Punch

Canadian asset managers 3iQ, Purpose Investments, and Evolve have launched their XRP ETFs, which began trading on Wednesday. This move highlights an accelerated response from Canadian regulators compared to their US counterparts, who are still awaiting SEC approval for similar products.

XRP experienced a slight dip, decreasing by only 0.5% in the 24 hours following the announcement. This minor fluctuation occurred despite the significant news of the ETF launches.

XRP ETFs Debut in Canada Amid US Approval Delays

Canadian investment firm 3iQ has introduced a spot XRP ETF, providing North American investors with exposure to the price of this major cryptocurrency. The new product, named 3iQ XRP ETF (XRPQ), commenced trading on the Toronto Stock Exchange on Wednesday.

To attract investors, the ETF will offer a zero management fee for the first six months after its launch. Ripple, the company behind the XRP Ledger, is an early investor in the ETF.

“The launch of XRPQ marks another milestone in our mission to provide investors with convenient and cost-effective access to digital assets within a regulated framework,” said Pascal St-Jean, President and CEO of 3iQ.

XRPQ aims to invest solely in long-term holdings of XRP, acquiring all tokens through reputable cryptocurrency exchanges and verified OTC providers. 3iQ emphasizes that all XRP assets are held in independent cold storage to ensure maximum security, protecting them from online threats and custody risks.

Evolve also launched its XRP ETF under the ticker XRP. This fund will hold its assets in “physical XRP,” allowing investors to easily hold the asset within brokerage accounts.

Purpose Investments joined the wave with the launch of its XRPP ETF, also offering a management fee holiday for the new XRP ETF.

Meanwhile, the US Securities and Exchange Commission (SEC) has yet to reach a decision on 11 spot XRP ETF applications.

The agency opened a public comment period for asset manager Franklin Templeton’s proposed XRP ETF. Cboe BZX initially filed the ETF’s 19b-4 in March, but the regulator delayed its decision in April, extending the review period.

Bloomberg analyst James Seyffart noted that the SEC has until October to decide on the XRP ETF applications.

XRP experienced a 1% decrease in the past 24 hours following the announcement. This decline coincides with the US Federal Reserve (Fed) maintaining stable interest rates during its Federal Open Market Committee (FOMC) meeting on Wednesday.

Key Takeaways:

• Canadian asset managers 3iQ, Purpose, and Evolve have launched XRP ETFs, trading since Wednesday.
• The XRP ETF launch in Canada contrasts with the delayed approval process in the US.
• XRP saw a minimal decrease of 0.5% in the 24 hours after the ETF announcements.

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