Canada’s XRP ETF Launch Pressures US as Crypto Regulation Lags
Canada has taken a bold lead in the crypto investment space by launching the first-ever spot XRP exchange-traded funds (ETFs) in North America, well ahead of the United States. This development has sparked renewed debate and urgency among U.S. market participants, as two Canadian asset managers, 3iQ and Purpose Investments, began trading their XRP ETFs on the Toronto Stock Exchange (TSX) earlier today.
These new investment products offer simplified access to XRP—the fourth-largest cryptocurrency by market capitalisation—without requiring investors to hold or manage the digital asset directly. 3iQ’s fund is trading under the ticker XRPQ, while Purpose Investments has listed its product under multiple tickers—XRPP, XRPP.B, and XRPP.U—to cater to different currency denominations.
3iQ also revealed that Ripple, the firm behind the XRP token, is an early investor in its ETF. The fund will operate with a zero-per-cent management fee for the first six months and will use cold storage to safeguard its assets. Purpose’s ETFs are designed to be accessible via registered accounts such as RRSPs and TFSAs, offering tax-efficient exposure to XRP for Canadian investors.
These products cater not only to local retail investors but are also available to select international investors, depending on jurisdictional regulations. Institutional demand—particularly from those seeking regulated, custody-secure crypto vehicles—played a key role in bringing the ETFs to market.
While Canada celebrates this milestone, the U.S. continues to lag. Several firms—including Franklin Templeton, Grayscale, Bitwise, and ProShares—have filed applications with the Securities and Exchange Commission (SEC) to launch similar XRP ETFs, but none have received approval to date.
Franklin Templeton’s application was expected to receive a decision by June 17, but the deadline has been extended. ProShares’ application remains under review, with a key decision due in just two weeks.
Industry voices warn that prolonged delays from U.S. regulators could prompt global investors to seek exposure in more crypto-friendly markets like Canada. Coinbase’s Chief Legal Officer, Paul Grewal, echoed this concern in a recent post, stating that the U.S. urgently needs to establish clear rules for digital assets. As Canada forges ahead with regulatory clarity and product innovation, pressure is mounting on the U.S. to act before it loses its competitive edge in crypto finance.
