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Crypto ETF Battle Intensifies with XRP Dogecoin and Solana
Crypto | Feb 3, 2025
Image: Freepik/jcomp
Crypto ETF Competition Heats Up as XRP, Dogecoin, and Solana Gain Traction
Canada’s Purpose Investments announced that they officially filed a preliminary prospectus to Canadian regulators to launch an XRP exchange-traded fund (ETF), which may beat American competitors to market. The proposed XRP ETF will provide investors with direct exposure to XRP through a regulated investment vehicle, which further expands on its pioneering role of launching the world's first Bitcoin and Ether ETFs in the crypto sector in early 2021.
Som Seif, Founder and CEO of Purpose Investments:
"At Purpose, we remain steadfast in our commitment to innovation and to bridging the gap between traditional and decentralized finance. 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."
See: BlackRock Expands IBIT Bitcoin ETF Offering in Canada
Although this would be North America’s first spot XRP ETF, similar products already exist overseas such as Swiss-based 21Shares XRP ETP (AXRP), which trades on several European exchanges and is fully backed by XRP with currently $500 million USD AUM.
At the same time, U.S. firms such as Grayscale, Bitwise, WisdomTree, Canary Capital, and 21Shares have all submitted applications to launch their own XRP ETFs however the SEC has yet to greenlight any of these proposals. Approval of XRP ETFs in the U.S. is still being held up by the legal saga between Ripple and the SEC. Most recently, the SEC has filed an appeal against a previous court ruling that partially favoured Ripple, with Ripple’s response due by April 16, 2025. As a result, many industry experts believe that Canada’s more favourable regulatory stance could help Purpose Investments get its product to market first. Time will tell.
XRP isn’t the only crypto ETF game in town. Bitwise recently submitted a filing for a Dogecoin ETF, which would be the first meme-based digital asset ETF. Also, the Chicago Board Options Exchange (CBOE) has made it's third attempt to gain approval for a Solana ETF.
New Sheriff In Town
There's no question that the return of Donald Trump to the White House is promising for a crypto-friendly regulatory approach in the United States, as compared to the previous administration's SEC's regulate by enforcement approach under Gary Gensler. Thus, many experts are hopeful that this new regulatory shift will accelerate the approval process for the numerous crypto ETFs on hold in the queue including XRP, Dogecoin, and Solana.
See: Trump Media’s Patriot Economy Expands into Fintech
The change in regulatory sentiment can be seen on Polymarket where the probability of an XRP ETF getting approved in the U.S. in 2025 has risen to 80%.
Adding to the regulatory discussions, David Sacks, the U.S. Digital Asset Czar, is set to host a press conference on the future of digital assets tomorrow at 2:30PM ET, which may provide insights into the governments views of crypto regulations and ETF approvals.
Closing Outlook
With both Canadian and U.S. regulators reviewing applications and a new sheriff in town, investors are watching the developments closely. The potential approval of multiple crypto ETFs would significantly improve market access to a new basket of cryptocurrencies while boosting adoption and liquidity for digital assets.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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