Purpose Files Preliminary Prospectus For Spot XRP ETF

Purpose Investments, an asset management firm with over $23 billion in assets, has filed a preliminary prospectus seeking regulatory approval for the launch of a spot XRP exchange-traded fund.

The proposed Purpose Ripple ETF aims to provide investors with long-term exposure to XRP (XRP) and an opportunity to benefit from the asset’s capital appreciation, according to an announcment

Purpose Investments submitted the preliminary prospectus to Canadian securities regulators. The filing comes shortly after the firm also applied for the listing of a spot Solana (SOL) spot ETF.

Som Seif, chief executive officer of Purpose Investments, noted that XRP’s continued adoption could drive demand for a spot investment product.

“As XRP sees increasing adoption and institutional interest, we believe an ETF can offer investors a transparent and familiar way to access it within a regulated framework,” he noted.

There have been several applications for an XRP exchange-traded fund in the United States, with recent regulatory shifts encouraging issuers to push forward.

Grayscale, CoinShares, and Bitwise are among asset managers that have filed for approval to launch XRP exchange-traded funds. Other top cryptocurrencies attracting spot ETF applications include Solana, Litecoin, and Dogecoin.

These developments have accelerated following leadership changes at the United States Securities and Exchange Commission, particularly the departure of former SEC chair Gary Gensler.

Purpose Investments launched the world’s first Bitcoin ETF after securing approval from the Ontario Securities in February 2021.

Meanwhile, United States-based asset managers had to wait until January 2024 for approval from the Securities and Exchange Commission. Since then, spot Bitcoin exchange-traded funds in the United States have attracted more than $121 billion in assets.