Canadian Asset Manager 3iQ Launches XRP ETF on Toronto Stock Exchange

By: Eva Baxter

In a significant development for the cryptocurrency market, Canadian asset manager 3iQ has debuted an XRP-focused exchange-traded fund (ETF) on the Toronto Stock Exchange, marking a first for North America. The new ETF, trading under the ticker XRPQ, provides investors with direct exposure to XRP, a leading digital currency by market capitalization. This strategic initiative is set to boost XRP usage and adoption in the investment community.

The featuring of XRP in an ETF signifies a milestone in the mainstream acceptance of digital currencies. Notably, the ETF is backed by Ripple, the company behind the XRP Ledger. The endorsement by Ripple highlights the increasing legitimacy and potential of XRP as a competitive asset in the digital market. For the first six months, investors will benefit from a 0% management fee, providing an attractive proposition for both seasoned and new investors looking to diversify their portfolios.

As part of the ETF's risk management strategy, all holdings are sourced from reputable exchanges and over-the-counter (OTC) platforms, with secure cold storage being used. This facilitates secure and efficient management of digital assets, offering investors a transparent and low-cost entry into the burgeoning crypto market. The launch aligns with an observable uptrend in XRP network activity. The number of active addresses on the XRP Ledger has surged, reaching an unprecedented 295,000. Furthermore, wallets holding over one million XRP have also increased, evidencing rising interest from institutional investors.

The timing of the ETF launch coincides with pivotal developments in the legal front for Ripple. The company is seeking to resolve its ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC), and recently submitted a supplemental letter to expedite proceedings. These factors combined suggest a notable momentum for XRP within both market and regulatory landscapes. This bold move by 3iQ, coupled with active institutional participation, sets a precedent for potential future ETFs for other digital assets and could further cement XRP's place as a staple in digital investments. Interested parties can learn more about the offering from Ripple's official site or 3iQ's website.