Ripple's XRP remains arguably the most polarizing of all major digital assets. While Bitcoin advocates view it as antithetical to the decentralized ethos, XRP supporters emphasize its utility as a bridge asset and its role in real-time, cross-border settlements as keys to its longevity.
Regardless of viewpoint, the recent launch of the first spot XRP ETFs in North America marks a major milestone for XRP's mainstream financial acceptance. This arrival of a regulated financial product not only signals rising institutional interest for a broader cross-section of digital assets beyond Bitcoin, but also reflects the significant degree of legal clarity achieved for Ripple and XRP after several years in the regulatory wilderness.
XRP was built to support real-time payments and cross-border settlement, allowing institutions to move value between fiat currencies quickly and cost-effectively.
An XRP ETF is a financial product that enables investors to gain exposure to XRP’s price performance through a traditional brokerage account, trading conveniently on established stock exchanges. The first physical, or ‘spot’ versions of these funds launched in June, hold the underlying XRP in institutional custody and are structured to track the asset's market value.
As with our other digital asset ETFs for Bitcoin (BTCQ), Ethereum (ETHQ), and Solana (SOLQ), XRPQ removes the operational overhead associated with crypto custody and provides investors with a familiar, secure, and tax-efficient way to access XRP’s price performance. There is no need to create a wallet, manage private keys, or interact with a crypto exchange. Instead, exposure is achieved through regulated platforms, complete with daily pricing, audited holdings, and redemption mechanisms that are handled by the issuer and Authorized Participants (APs).
Jurisdiction dictates the structure of XRP and other exchange-traded products (ETPs). Canadian-listed XRP ETFs, for instance, are typically physically-backed with public transparency and liquidity requirements. European ETPs tracking XRP follow similar rules, though they vary by venue. Additionally, non-physical, leveraged ETFs exist, aiming for twice XRP's daily performance. These carry a higher risk profile, being generally designed for shorter-term trading and tactical positioning.
The timing of the first spot XRP ETFs is intimately linked with critical regulatory clarity around the digital asset. Previously, the prospect for a regulated XRP ETF was highly limited due to legal uncertainty stemming from the US SEC's December 2020 lawsuit, which alleged that XRP sales, including those on secondary markets, constituted an unregistered security offering.
Source: 3iQ
The SEC lawsuit triggered a wave of delistings across US-based digital asset exchanges, as platforms sought to avoid legal complications. However, the pivotal 2023 court ruling, which determined that secondary market sales of XRP do not constitute securities, proved a game-changer. This decision resolved long-standing regulatory ambiguity, especially for exchanges and asset managers, fostering renewed institutional interest in XRP.
While the US grappled with this uncertainty, other jurisdictions like Canada and some European countries maintained a more progressive regulatory stance on XRP, free from direct legal challenges by their primary financial regulators. This context explains why Canada was first to market with spot XRP ETFs.
For issuers, XRP is a logical next step in expanding digital asset ETFs beyond Bitcoin and Ethereum, given its established history, robust liquidity, and distinct narrative. XRP's growing acceptance also mirrors broader trends in digital asset infrastructure maturity, exemplified by launches like the 3iQ Solana Staking ETF (TSX: SOLQ, SOLQ.U). Converging factors such as increased demand for diversified exposure, rising comfort with blockchain-based financial rails, and evolving regulatory clarity, are making ETFs a primary access point for mainstream investors.
Compared with other digital asset ETFs, XRP ETFs offer distinct qualitative attributes. The underlying asset's lack of reliance on mining or staking simplifies custodial and operational structures, making them more energy-efficient. Furthermore, XRP's focus on cross-border payments functionally differentiates these ETFs from Bitcoin and Ethereum offerings, which typically align with a macro or Web3 theses.
The recent legal clarity surrounding XRP in US courts also provides ETF issuers greater confidence in structuring compliant products. For institutions, this can reduce perceived legal risk and compliance overhead. Additionally, the XRP Ledger’s high throughput and finality support real-time auditability and smoother NAV calculations for ETF administrators.
XRP ETFs may also appeal to a different investor segment: those prioritizing real-world utility over speculative narratives. Institutions seeking to align portfolios with financial innovation themes, or asset managers building crypto allocations around use-case diversification, may find XRP uniquely compelling.
The arrival of XRP ETFs marks a broader maturation in digital assets. XRP, once viewed as a regulatory grey area, now benefits from court-tested legal clarity, robust trading infrastructure, and a growing base of institutional interest. ETFs are helping translate that foundation into something investable, not just by crypto-native standards, but by the standards of traditional asset management.
Our 3iQ XRP ETF ( TSX: XRPQ, XRPQ.U) launched on June 18, 2025 with a 0% management fee for six months, making it a leading competitive digital asset ETF. One of North America's first to offer XRP exposure, it invests in long-term XRP holdings, with Ripple among its seed investors.
Whether or not the US market sees a spot XRP ETF before the end of 2025, the momentum suggests that infrastructure-focused digital assets are increasingly ready for regulated packaging. Indeed, with XRPQ accumulating some C$32 million in assets under management in just three days only serves to underscore this momentum.
As demand grows for differentiated digital asset exposure, XRP is positioned to serve a strategic role in the next wave of digital asset investment products.