Canadian Firm Aims to Launch First Spot XRP ETF Before US Competitors

• Purpose Investments wants to launch an XRP ETF in Canada and will likely beat US firms in the market due to faster approvals.
• XRP fell 3% downward and now faces key price levels at $2.62 and $3.55.

The Canadian securities regulators are now reviewing Purpose Investments’ preliminary prospectus regarding the planned worldwide debut of the XRP spot exchange-traded fund. The move comes as XRP experiences a 3% decline in value, highlighting the dynamic nature of the cryptocurrency market.

The Toronto-based asset manager intends to exploit Canadian regulatory practices favouring cryptocurrency ETFs. Purpose Investments plans to structure this new XRP fund by holding significant long-term holdings of XRP to boost capital appreciation. The company previously launched the spot Bitcoin and Ethereum ETFs on the Toronto Stock Exchange in 2021.

Som Seif, Purpose Investments’ founder and CEO, emphasized the growing institutional interest in XRP. He added that an ETF framework would provide investors with a regulated and transparent avenue for cryptocurrency exposure. While European markets already feature XRP exchange-traded products, a spot ETF would represent a significant milestone for North American investors.

US Market Anticipates SEC Response on Multiple XRP ETF Applications

The race for XRP ETF approval has intensified as major US asset managers await regulatory decisions. Grayscale, Bitwise, Canary Capital, WisdomTree, and 21Shares have submitted applications to the Securities and Exchange Commission, demonstrating strong industry interest in expanding cryptocurrency investment options.

Market predictors show favourable expectations, according to Polymarket data, which forecasts an 82% chance for US regulators to authorize an XRP ETF. The SEC’s history of prudence regarding cryptocurrency investment products indicates that American products could require more time to launch than their Canadian equivalents.

XRP’s price action has established a descending channel pattern since January 15, with current market movements testing support levels. Technical indicators suggest increased bearish pressure, with the Relative Strength Index and Stochastic Oscillator readings below neutral thresholds.

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Technical Analysis Points to Critical Price Levels

The cryptocurrency faces a critical support level near $2.62 if it breaks below the channel’s lower boundary. Conversely, successful navigation above the channel’s upper limit could pave the way for a potential challenge of the $3.55 all-time high resistance level.

Market experts predict that short-term trading will remain negative, but an XRP ETF approval can transform market behavior. The creation of regulated investment products enhances accessibility and attracts institutional investors, allowing thousands of new investors to enter the markets.

The cryptocurrency investment arena is shifting quickly because traditional financial entities are starting to use regulated instruments to accept digital assets. Purpose Investments’ initiative creates another important advancement that will lead cryptocurrencies toward wide market acceptance and could define future financial product guidelines in Canadian and US marketplaces.

The success of Purpose Investments’ XRP ETF application will affect future developments in the cryptocurrency exchange-traded fund market as regulatory systems advance. Market participants will closely monitor both the regulatory response and XRP’s price action in the coming weeks, as these developments could herald a new chapter in cryptocurrency investment accessibility.