Purpose Investments Set to Pioneer the XRP ETF

XRP is currently facing some turbulence, with its price down 3% on Saturday following the announcement that Purpose Investments, a Canadian asset manager

XRP price is consolidating, down 3% on Saturday after Purpose Investments, a Canadian asset manager, announced filing a prospectus with Canadian securities regulators to launch the first-ever spot Ripple (XRP) exchange-traded fund (ETF). The move places Purpose ahead of U.S. firms, as the Securities and Exchange Commission has yet to respond to filings from American issuers.

Purpose Investments to Spearhead XRP ETF

Purpose Investments has taken a major step by filing a preliminary prospectus for the Purpose Ripple (XRP) ETF, aiming to provide investors with an easy and regulated way to gain exposure to XRP. The firm intends to allocate the majority of the ETF’s assets in long-term holdings of XRP, targeting sustained capital appreciation for its holders.

This move builds on Purpose Investments’ prior success with launching the world’s first spot Bitcoin and Ethereum ETFs on the Toronto Stock Exchange in February and April 2021, respectively. The firm now aims to expand its portfolio with the introduction of the world’s first spot XRP ETF, marking a key milestone in the growing adoption and institutional interest surrounding Ripple’s cryptocurrency.

Gaining an Edge Over U.S. Issuers

Purpose Investments is looking to capitalize on Canada’s typically faster regulatory framework for ETF approvals, especially in the case of cryptocurrency ETFs. While U.S.-based asset managers like Grayscale, Bitwise, Canary Capital, WisdomTree, and 21Shares have all filed for XRP ETF approvals with the SEC, Purpose Investments’ filing could potentially lead to the launch of the first XRP ETF, as Canadian regulators are known for faster approval processes.

“The approval of an XRP ETF in Canada could set a significant precedent, especially as U.S. issuers await the SEC’s decision,” said Som Seif, founder and CEO of Purpose Investments.

The growing anticipation for an XRP ETF in the U.S. has been evident in the increasing odds for approval, with Polymarket data showing an 82% probability that the SEC will approve the filings.

XRP Price Action, Market Sentiment

XRP price action has been consolidating, showing a slight downward trend. At the moment, it is following a developing descending channel, which began forming on January 15. If the token fails to hold above the channel’s lower boundary, XRP could find support near the $2.62 mark. On the other hand, if the price can manage to stay above the upper boundary and hold it as support, XRP could make a move to test its all-time high resistance around $3.55.

Technical indicators, including the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch), suggest a dominant bearish momentum, as both indicators remain below neutral levels. This may point to further downside for XRP, adding an element of uncertainty to its price outlook.

Despite the potential price challenges, Purpose Investments’ proposed XRP ETF is expected to provide a much-needed boost to institutional interest, offering a regulated entry point for investors seeking exposure to Ripple’s cryptocurrency.

As XRP faces volatility and market fluctuations, the launch of the Purpose Ripple ETF could signal a pivotal moment for both the asset and the broader cryptocurrency market, offering a pathway for continued growth and adoption. The future of XRP in the institutional investment space is now heavily tied to the success of such products.

Investors are keeping a close eye on how the SEC responds to U.S. filings and whether Purpose’s ETF launches first in Canada, marking a new chapter in Ripple’s market trajectory.