Purpose Investments to Launch XRP ETF, Will US Regulators Approve?

The Canadian asset manager Purpose Investments has submitted a proposal to launch an XRP exchange-traded fund (ETF). The company filed a preliminary prospectus

Canadian asset manager Purpose Investments has submitted a proposal to launch an XRP exchange-traded fund (ETF) with the country’s securities regulators. If approved, the platform will launch the world’s first XRP ETF.

According to a press release on Monday, Purpose Investments filed a preliminary prospectus with the securities regulators to launch Purpose Ripple ETF. The fund manager, which reportedly oversees over $23 billion in assets, is preparing to launch the first XRP ETF globally.

The platform’s launch of an XRP ETF will mark a significant development in the digital asset industry. Notably, Purpose Investments made history by being the first to introduce both Bitcoin and Ether ETFs.

Som Seif, the founder of Purpose Investments, unveiled the platform’s vision of offering an XRP product in a statement.

“At Purpose, we remain steadfast in our commitment to innovation and to bridging the gap between traditional and decentralized finance. As XRP sees increasing adoption and institutional interest, we believe an ETF can offer investors a transparent and familiar way to access it within a regulated framework.”

The press release also highlighted Purpose Investments' focus on merging traditional finance with the evolving decentralized finance and blockchain technology. In addition, the platform intends to make crypto benefits accessible globally.

Vlad Tasevski, the Chief Innovation Officer at Purpose Investments, stated that the company aims to make the public familiar with crypto, helping them understand, access, and invest in digital assets. Tasevski added, “We remain committed to providing exposure to transformative digital assets and blockchain technologies through regulated investment vehicles.”

In a recent development, Grayscale filed a 19b-4 form with the NYSE to transform its existing XRP Trust into a publicly traded ETF. BlackRock is also expected to enter the fray, with speculation mounting that the asset management giant will soon file its own an ETF application for XRP.

The possibility of an XRP ETF in the United States is a long-standing question, mainly due to the ongoing Ripple-SEC lawsuit. Though Judge Analisa Torress ruled in favor of Ripple twice, an ultimate resolution in the case is still pending.

However, as Ripple Labs President Monica Long previously stated, a spot ETF could “be a reality” under the Donald Trump administration. Trump's crypto-focused policies and Gary Gensler's resignation from his role at the SEC have sparked optimism, potentially paving the way for an XRP ETF approval.