Canadian firm Purpose Investments has filed a preliminary prospectus to launch the world's first spot XRP ETF. This move could pressure US regulators to act more decisively.
Purpose Investments' Achievements
Purpose Investments, managing over $23 billion in assets, has a successful track record with its Bitcoin and Ethereum ETFs launched in 2021. The firm now aims to expand its digital asset offerings. The Ontario Securities Commission approved the world’s first spot Bitcoin ETF in February 2021, well before the US granted its approvals in January 2024. Som Seif, CEO of Purpose Investments, emphasizes bridging traditional and decentralized finance.
Rising Institutional Demand for XRP
Institutional demand for XRP continues to grow, fueled by its use in cross-border payments and partnerships with major financial institutions. However, the Ripple-SEC lawsuit remains a significant hurdle for US approval. In July 2023, Judge Analisa Torres partially ruled in favor of Ripple, providing some hope for future US approval.
Impact of Canadian Approval on the US
Analysts suggest that Canadian approval of Purpose's XRP ETF could set a precedent, pressuring the US SEC to move faster. As XRP adoption grows, it is only a matter of time before similar ETFs launch in the US.
Approval of the first spot XRP ETF by Purpose Investments could be a significant milestone for the cryptocurrency market. This event may push US regulators to act more swiftly and expedite the adoption of similar financial products in the American market.
