XRP ETFs Launch in Canada: What Investors Should Know
XRP enters the Canadian ETF market, expanding crypto exposure for investors.
The ETF landscape for Canadian investors interested in cryptocurrencies has expanded recently, with the introduction of several investment solutions offering exposure to XRP. XRP is a cryptocurrency and the native token of the open-source XRP Ledger, created to improve global financial transfers and facilitate the exchange of multiple currencies. Investors also use it to store value and benefit from price changes.
XRP Explained
As the fourth-largest cryptocurrency by market cap, XRP’s value proposition is quite distinct from its peers. Developed by Ripple Labs Inc., a U.S.-based technology firm dedicated to enhancing global payment systems, XRP is the native token of the XRP Ledger (XRPL), an open-source, decentralized blockchain designed for fast and inexpensive cross-border transactions.
The XRP Ledger was launched in 2012 with the main goal of enabling real-time settlement of financial transactions between parties, regardless of location. XRP acts as a bridge currency in the Ripple ecosystem, helping to provide liquidity between fiat currencies when direct exchange is not possible or cost-effective. For instance, it can be used to convert USD to JPY by first converting USD to XRP and then XRP to JPY within seconds, at a much lower cost than traditional banks or money transfer services.
Differentiating XRP From its Peers
XRP differs from Bitcoin and Ethereum in important ways. First, its total supply is 100 billion coins, all created when the XRP Ledger launched in 2012. No new XRP can be produced, so its supply remains fixed.
Second, its operating model differs from Bitcoin’s Proof of Work and Ethereum’s Proof of Stake. XRP uses a unique consensus mechanism called the Ripple Protocol Consensus Algorithm (RPCA). Instead of relying on miners or stakers, XRP validators reach agreement through a process based on a Unique Node List (UNL)—a list of trusted validators maintained by each node. Transactions are proposed, voted on, and confirmed when at least 80% of a validator’s UNL agrees on the transaction set, enabling new ledger versions to be validated every 3–5 seconds. This approach allows for rapid, energy-efficient transaction finality without mining, offering high throughput and low cost. While the model depends on trust and UNL overlap among validators, it has proven reliable and scalable since the XRP Ledger’s launch in 2012.
XRP’s Value Proposition
XRP’s value proposition lies in its ability to enable fast, low-cost, and scalable cross-border payments. Unlike traditional payment systems like SWIFT, which can take days and involve multiple intermediaries, XRP allows for real-time settlement with full transparency. For banks, fintechs, and remittance services, XRP provides a regulated, institution-friendly alternative to traditional methods, especially as compliance frameworks become more mature globally. Its capacity to lower capital requirements and simplify international money transfers makes it a compelling solution for modernizing global finance.
Investing in XRP
For Canadian investors interested in gaining exposure to XRP, three ETF providers have recently launched ETFs that offer such exposure, namely:
Evolve Funds Group Inc.’s Evolve XRP ETF (Tickers: XRP) will invest in long-term holdings of XRP acquired through Coinbase and/or other reputable XRP trading platforms.
3iQ's 3iQ XRP ETF (Tickers: XRPQ/ XRPQ.U) will invest in long-term holdings of XRP, purchased from reputable digital asset trading platforms and OTC counterparties.
XRPQ will charge a 0% management fee for the first six months, and the underlying assets will be completely secured in standalone cold storage.
Purpose Investments launched their Purpose XRP ETF (Tickers: XRPP/XRPP.B/XRPP.U), which invests in and holds substantially all of its assets in long-term holdings of XRP. The management fee for the fund will be waived until February 1, 2026.
Takeaway
With the increasing securitization of cryptocurrencies, investors have broader options regarding which cryptocurrencies to include in their portfolios. The launch of the aforementioned ETFs highlights the choices available to investors within the growing digital assets class.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
