Key Takeaways
- First XRP ETF in North America: Canadian investment firm 3iQ launched XRPQ, the first exchange-traded fund (ETF) focused on the XRP cryptocurrency in North America, trading on the Toronto Stock Exchange with support from Ripple.
- Zero Management Fees for Six Months: To encourage early adoption, 3iQ is waiving all management fees for the first six months, making XRPQ one of the most competitively priced digital asset ETFs.
- Ripple’s Strategic Involvement: Ripple, the company behind XRP, is an early investor in the ETF, adding institutional credibility.
- Secure Custody and Institutional Infrastructure: The ETF uses cold storage to protect assets from cyber threats and sources XRP only from established exchanges, addressing security concerns.
- Growing Institutional Interest in XRP: The ETF launch coincides with similar products from competitors and rising interest in XRP from US firms.
3iQ Debuts North America’s First-Ever XRP ETF
Canadian investment manager 3iQ launched North America’s first exchange-traded fund (ETF) focused on XRP cryptocurrency on Wednesday, marking a significant milestone for institutional crypto investment. The 3iQ XRP ETF (XRPQ) began trading on the Toronto Stock Exchange with backing from Ripple, the blockchain company behind XRP.
The ETF offers investors direct exposure to XRP, currently the third-largest cryptocurrency by market value, without requiring them to directly purchase and store the digital asset. An ETF is an investment fund that trades on stock exchanges like individual stocks, allowing investors to buy shares that represent ownership in a basket of underlying assets.
Zero Fees To Incentivise Early Adoption
3iQ attracts investors by waiving all management fees for the first six months after launch. Management fees typically cover the costs of operating the fund, including buying and selling assets, storage, and administration. This promotional pricing makes XRPQ among the most competitively priced digital asset ETFs available.
“The launch of XRPQ marks another milestone in our mission to provide investors with convenient, cost-effective access to digital assets within a regulated framework,” said Pascal St-Jean, 3iQ’s President and CEO, according to the company’s announcement.
Ripple’s Strategic Investment At A Nascent Stage
Ripple’s participation as an early investor adds credibility to the fund and signals confidence in institutional XRP adoption. Ripple develops blockchain technology and crypto solutions for enterprises, with XRP serving as the native token for the XRP Ledger blockchain network.
The XRP Ledger processes cross-border payments in three to five seconds with transaction costs often less than a cent, positioning it as a solution for international money transfers and business payments.
Provides Secure Storage and Professional Management
The ETF exclusively purchases XRP tokens from established cryptocurrency exchanges and over-the-counter trading platforms. All holdings remain in cold storage, meaning the digital assets stay offline and disconnected from internet networks, protecting them from cyber attacks and hacking attempts.
Cold storage represents the gold standard for cryptocurrency security, as it eliminates the risk of online breaches that have plagued the industry. This institutional-grade custody approach addresses major concerns that have prevented traditional investors from entering the crypto market.
The Market Is Hot
3iQ’s launch coincides with similar XRP ETF debuts from competitors Evolve and Purpose Investments, also trading on the Toronto Stock Exchange. This simultaneous launch demonstrates growing institutional demand for regulated cryptocurrency investment products.
Meanwhile, US asset managers await regulatory approval from the Securities and Exchange Commission (SEC) for their own XRP ETF proposals, including applications from Franklin Templeton for both XRP and Solana ETFs.
XRP’s price performance has attracted institutional attention, climbing from $0.02 in January 2015 to over $2.19 recently, representing gains exceeding 10,800% over the past decade, according to 3iQ’s data.
The Canadian launches give North American investors regulated access to XRP exposure, positioning Toronto as a leader in cryptocurrency ETF innovation.
Read More: Solana Price Prediction: Will ETF Buzz Help SOL Reverse 21% Yearly Loss?
