Purpose Investments have filed for a new spot XRP ETF.
The offering is targeted toward investors in Canada and around the world.
The filing has boosted the sentiment for XRP, with a mild price surge.
Canada-based financial company Purpose Investments has filed a preliminary prospectus with regional regulators to launch a Ripple (XRP) Exchange Traded Fund (ETF).
This would be the first of such offerings globally if it gets approved. The firm this move as its strategy to expand access to regulated, institutional-grade crypto exposure.
What is the Purpose Ripple XRP ETF About?
According to the announcement, the Purpose Ripple ETF aims to invest all of its assets in long-term holdings of XRP, the associated token of the Ripple brand. It also seeks to provide holders of ETF units with the opportunity for long-term capital appreciation. This is also Purpose Investments avenue to establish its preeminence in the crypto asset ecosystem.
Som Seif, founder and CEO of Purpose Investments, highlighted the firm’s commitment to innovation.
Furthermore, he cited the mission to bridge the gap between Traditional Finance (TradFi) and Decentralized Finance (DeFi). Since Ripple made significant headway in the legal debacle with the United States Securities and Exchange Commission , XRP has recorded increased adoption and institutional interest.
On this premise, Seif said the firm “believes an ETF can offer investors a transparent and familiar way to access it within a regulated framework.”
Purpose Investments’ Chief Innovation Officer, Vlad Tasevski, categorized the move as part of the firm’s effort to become investors’ leading and most trusted partner. It plans to help these individuals and organizations harness the benefits of crypto and digital assets by enabling them to understand, access, and confidently invest in them.
“We remain committed to providing exposure to transformative digital assets and blockchain technologies through regulated investment vehicles.”
“We remain committed to providing exposure to transformative digital assets and blockchain technologies through regulated investment vehicles.”
The filing has stirred new sentiment among XRP investors. At the time of writing, the coin was changing hands for $0.3104, up by 3% in the past 24 hours. This is a unique turnaround for the coin, which has been in a bearish consolidation thus far this week.
US Asset Managers Files to List XRP ETFs
It is worth noting that a few investment asset management firms in the United States have submitted their XRP ETF applications with the SEC since last year. This includes , Canary Capital, Grayscale, and .
The SEC has of Grayscale’s application. As with most crypto ETFs, the asset manager intends to convert the Grayscale Digital Large Cap Fund (GDLC) into an ETF. This GDLC is a multi-asset fund that offers investors access to various cryptocurrencies.
Some of these digital assets are Bitcoin , Ethereum , , Avalanche , and Solana .
In the last few years, crypto investors in the US have dealt with crackdowns, both directly and indirectly.
Under the leadership of Gary Gensler, the SEC adopted an enforcement approach to regulate the burgeoning sector. As a result, not many such crypto ETFs were seen until last year, when the regulator greenlighted spot Bitcoin and Ethereum ETFs.
Moving forward, the broader crypto community expects the terrain to change with a new government. Donald Trump was inaugurated as the 47th President of the United States, who as the interim Chair of the SEC.
On this basis, the approval for XRP ETFs may no longer be a mirage.