In a delightful turn of events, the esteemed Canadian financial company, Purpose Investments, has submitted a preliminary prospectus to regional regulators for the launch of a Ripple (XRP) Exchange Traded Fund (ETF).
This audacious move would make it the first of its kind globally, should it receive the necessary approvals. The firm has acknowledged this venture as part of their strategy to expand access to regulated, institutional-grade crypto exposure.
The Purpose Ripple XRP ETF: A Capital Endeavour
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.
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 (SEC), 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.”
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 Also Eye 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 Bitwise, Canary Capital, Grayscale, and WisdomTree.
The SEC has confirmed receipt 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, XRP, 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 appointed pro-crypto Mark Uyeda as the interim Chair of the SEC.
On this basis, the approval for XRP ETFs may no longer be a mirage.
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2025-01-31 18:56