Ripple-Backed Spot XRP ETF Goes Live in Canada

Canadian digital asset manager 3iQ Corp. has debuted its spot-based XRP ETF on the Toronto Stock Exchange (TSX).

Dubbed the 3iQ XRP ETF (XRPQ), the product will provide North American users with exposure to the fourth-largest crypto by market capitalization. 

To commemorate the ETF launch, the 3iQ team disclosed plans to ring the TSX’s closing bell today. Investors will trade the ETF shares at a 0% management fee for the first six months of trading. This move is part of efforts to grant investors cost-effective access to the product. 
Ripple Invests in 3iQ Fund 
Notably, San Francisco-based crypto payments firm Ripple expressed its confidence in the ETF by investing in the fund. However, 3iQ did not disclose the amount of investment the company made in XRPQ. 

Per the announcement, the ETF will invest in long-term XRP positions acquired through regulated platforms, such as over-the-counter (OTC) desks. The XRP coins backing the ETF will be held in segregated cold storage to minimize the risk of potential hacks. 

Furthermore, Canadian investors can acquire shares of XRPQ through their registered accounts. Notably, the XRP product will also be made available to institutional clients outside of Canada. However, investments from institutional clients will be subject to local rules. 
3iQ CEO Reacts 
Commenting on the development, 3iQ’s CEO and President, Pascal St-Jean, suggested that the launch of XRPQ aligns with its mission of offering access to regulated and affordable digital assets. 

He acknowledged XRP’s remarkable growth potential over the past decade. Notably, XRP price has surged roughly 10,850% since 2015, climbing from $0.02 to $2.19. 

As a result, St-Jean emphasized that XRPQ will create an avenue for Canadians and eligible international investors to benefit from XRP’s growth potential. 
XRP ETFs Gain Traction 
Meanwhile, the development comes less than a day after Purpose Investments announced the launch of its XRP ETF product (XRPP). Like XRPQ, Purpose’s XRP ETF also launched on the Toronto Stock Exchange today. 

While two-spot XRP ETFs have rolled out in Canada, investors are still awaiting the debut of a similar product in the United States. Since last year, several asset managers have filed with the SEC to launch spot XRP ETFs in the U.S. 

There are more than 10 XRP ETF applications currently awaiting the SEC’s approval. In the meantime, speculation suggests that the U.S. regulator will approve the launch of these products by October 2025. It remains to be seen whether this prediction will come to fruition.