Canada Approves First Spot XRP ETF with Tax Benefits, Pressuring US Regulators
Canada has made a landmark move by granting Purpose Investments regulatory approval to launch the first spot XRP ETF, set to debut on the Toronto Stock Exchange under the ticker XRPP on June 18, 2025. This ETF allows investors to gain direct exposure to XRP through registered accounts such as RRSPs and TFSAs, offering notable tax advantages for Canadian residents. Following the announcement, XRP’s price surged nearly 7%, with trading volume jumping 110% to over $3.45 billion and open interest climbing to $4.34 billion, signaling robust trader interest. Network data shows increased activity and whale accumulation, pointing to growing engagement in XRP. This regulatory step strengthens Canada’s position as a proactive leader in crypto innovation, especially as Purpose Investments also pioneered the first Bitcoin ETF in North America. The approval from the Ontario Securities Commission is seen as an institutional endorsement of the crypto market’s maturity, likely to enhance investor protection and attract more retail and institutional participants. Furthermore, Canada’s move intensifies pressure on US regulators, especially as large asset managers like BlackRock eye similar products contingent on clearer regulations. Experts believe this milestone could pave the way for global adoption of XRP and other spot crypto ETFs, accelerating mainstream crypto integration into traditional financial portfolios.
Bullish
The approval of Canada’s first spot XRP ETF is a bullish signal for the XRP market. The ETF’s launch is coupled with strong trading volume and open interest, suggesting renewed institutional and retail enthusiasm. The added tax advantages for Canadian investors further increase its appeal. Canada’s regulatory progress puts competitive pressure on the US, raising the possibility that similar products could soon be approved stateside. Historically, the launch of accessible, regulated crypto investment products—such as the first US spot Bitcoin ETFs—has sparked notable price and volume increases. Network metrics indicating higher engagement and whale accumulation reinforce the positive sentiment. In the short term, the ETF is expected to bolster XRP’s price and market activity. Over the long term, it may result in wider global adoption of XRP and greater demand, especially if US and international regulators follow suit.