Will the US Approve Spot XRP ETF on June 18? Here’s What We Know

Building upon the established exchange-traded fund (ETF) framework pioneered by the United States, Canada is poised to launch a Spot XRP ETF within its financial market. Trading will commence on June 18th.

This development follows the successful launch and trading of several spot Bitcoin and Ethereum exchange-traded funds (ETFs). It marks a significant step as Purpose Investments receives regulatory approval for an ETF based on the Ripple-owned XRP cryptocurrency.

While opinions among U.S. investors remain divided, this move by Canada could potentially serve as a catalyst, influencing the Securities and Exchange Commission (SEC) to consider similar action.

Here’s What We Know About Spot XRP ETF

Purpose Investments, a prominent Canadian firm managing over $24 billion in assets, will launch its first XRP fund this week. Purpose Investments will list its fund on the Toronto Stock Exchange (TSX) under the tickers XRPP (CAD-hedged), CRPP.B (CAD non-hedged), and XRPP.U (USD).

This allows Canadian investors to keep XRP in their savings accounts, such as tax-free savings accounts (TFSAs) and registered retirement savings plans (RRSPs), which helps them save on taxes.

With this start, Canada is emerging as a leader in safe cryptocurrency investments. This also challenges the United States and Donald Trump’s idea to make “Crypto made in America.” The SEC’s delays are slowing things down in the U.S., but experts think the U.S. will catch up.

Major fund companies in the U.S., such as Franklin Templeton and Bitwise, are awaiting the SEC’s decision on their XRP fund applications. Despite recent delays temporarily halting these applications, experts still anticipate their approval in 2025.

Market Predictions

Bloomberg analysts believe there is an 85% chance that the SEC will approve a Ripple fund within the last three months of the year. Investors agree, as evidenced by Polymarket data, which shows an 88% chance of approval. This chance was as high as 98% before, but it has decreased slightly because a Solana fund may also be approved.

The launch of Purpose Investment’s Ripple fund could help the SEC establish more explicit rules, which might lead to the approval of similar products in the U.S. There are already several funds that utilize borrowed money based on this cryptocurrency, making this more likely.

The biggest obstacle to approval remains the Ripple vs. SEC case, which is nearing its conclusion, increasing the likelihood of approval, but it remains unclear when it will occur.