Canadian Investment Firm Purpose Investments Files Preliminary Prospectus to Introduce World's First XRP ETF

Purpose Investments manages over $23 billion in assets, and already owns Bitcoin and Ethereum exchange-traded funds. The company's CEO Som Seif mentioned XRP's fast adoption rate as a key motivator for the filing.

Canadian investment firm to launch world’s first XRP ETF

A Canadian investment firm has filed paperwork to launch the world’s first XRP exchange-traded fund (ETF).

According to a recent report by Proactive Investors, Purpose Investments, a major Canadian investment firm, has filed a preliminary prospectus with the Canadian securities regulators to create the first-ever ETF for the world’s third-largest cryptocurrency asset. The move will pave the way for investors to gain direct exposure to XRP.

The ETF application comes as no surprise, given XRP’s stellar performance in recent months, emerging as the fastest-growing cryptocurrency among the top 10 digital assets by market capitalization.

Purpose Investments, which boasts over $23 billion in assets under management, already has Bitcoin and Ethereum ETFs and is now looking to add XRP to its lineup.

According to Som Seif, Purpose Investments’ CEO, XRP’s rapid adoption rate was a key factor in the firm’s decision to launch the ETF, aiming to meet the growing demand from investors.

NYSE Arca XRP ETF also in the works

In related news, U.S.-based investment firm NYSE Arca is also making efforts to convert Grayscale’s $16 million XRP Trust fund into an ETF.

This move, similar to the Purpose Investments ETF application, will provide retail investors with exposure to XRP, making it more accessible to mainstream investors.

The filings come amid a shift in policy at the U.S. Securities and Exchange Commission (SEC). After Gary Gensler stepped down as Chair, the ‘renewed’ SEC has been moving toward a more open regulatory approach, working with the crypto industry to establish a clearer regulatory framework.