Key Takeaways
- Canada’s Purpose Investments will launch Canada’s first XRP ETF after OSC granted it regulatory approval.
- The Ontario Securities Commission (OSC) allows XRP ETF holding in a registered account, giving Canadian investors tax advantages.
- The approval of Canada’s XRP ETF marks a key regulatory milestone amid global uncertainty and Bitcoin criticism from Canada’s new PM.
The Canadian firm behind the world’s pioneer spot Bitcoin ETF, Purpose Investments, will be launching the Purpose XRP ETF on the Toronto Stock Exchange on Wednesday, June 18, 2025. The move will provide investors with direct exposure to spot XRP, the native token of the XRP Ledger.
According to an official press release, the Purpose XRP ETF will trade under the ticker XRPP and will be offered in three different versions, namely CAD-hedged (XRPP), CAD non-hedged (XRPP.B), and US dollar (XRPP.U) units. Interested investors are eligible to hold the ETF in registered accounts such as TFSAs and RRSPs.
Pushing The Boundaries of What’s Possible
The move comes following an approval by Canada’s top regulator, the Ontario Securities Commission (OSC), allowing users to hold this ETF in registered accounts. Under the local law, customers could be allowed to pay substantially lower taxes on these assets. A statement by Vlad Tasevski, Purpose’s Chief Innovation Officer, stated:
“We’re proud to continue pushing the boundaries of what’s possible in the space by offering investors simple, secure access to the infrastructure powering real-world blockchain adoption […] the OSC’s granting of a receipt for the Purpose XRP ETF prospectus reinforces Canada’s global leadership in building a regulated digital asset ecosystem. We’re proud to continue pushing the boundaries of what’s possible in the space.”
Digital Asset Leader in North America
Purpose Investment initially filed its preliminary prospectus for a spot XRP fund on January 31, aiming to become the world’s first issuer of an XRP ETF. However, the OSC has only granted a “final prospectus receipt,” being the last essential step needed before a fund can start trading. Canada has consistently positioned itself as a leader in digital assets in the North American region and became the first firm to launch North America’s Bitcoin ETF four years ago. A good number of Canada’s institutional investors hold crypto, and the nation allowed Coinbase to secure a registration license last year.
Conclusion
The move takes place during a time when the current Canadian Prime Minister is a severe critic of Bitcoin, a decision that has the potential to disrupt the country’s Bitcoin policies. The decision by the OSC to approve the Purpose XRP ETF indicates a positive sign under the prevailing circumstances. Pundits believe the move could encourage the US Securities and Exchange Commission (SEC) to move forward and launch similar products in the US.
Frequently Asked Questions
Is Canada friendly to crypto?
Canada was among the first countries to enact rules for crypto, starting with anti-money laundering guidelines in 2014. The government has repeatedly evolved its regulatory guidance in recent years.
Is cryptocurrency legal in Canada?
In Canada, cryptocurrencies are legal to purchase but are not considered legal tender. The Investment Industry Regulatory Organization of Canada (IIROC) requires that all Cryptocurrency trading platforms register with provincial regulators.
Do users need to declare crypto in Canada?
Yes. The Canada Revenue Agency (CRA) is clear that crypto is subject to Income Tax. Users must pay Income Tax on half of any crypto gains from dispositions of crypto, as well as Income Tax on any additional income from crypto, like staking or being paid in crypto.
