Here’s your no-nonsense guide to understanding a streamlined way to invest in one of crypto’s most practical tokens. In this explainer, we’ll break down exactly what a spot XRP ETF is, how it differs from other crypto funds like futures ETFs or crypto-adjacent equities, and why Purpose XRP ETF (TSX: XRPP) offers a uniquely accessible way to participate in one of the most utility-driven digital assets in the world.
Because not all crypto ETFs are created equal. And when it comes to spot ETFs, the details matter.
What Is XRP?
XRP is the native token of the XRP Ledger (XRPL)—a decentralized blockchain purpose-built to make global payments faster, cheaper, and more efficient. It’s not a meme coin or a speculative moonshot. It’s a digital asset designed for utility, and it’s already being used by financial institutions around the world to facilitate cross-border transfers and liquidity.
In short: XRP isn’t trying to replace fiat currency. It’s trying to move it faster.
What Is a Spot ETF?
A spot ETF gives investors direct exposure to the underlying asset. That means if you invest in the Purpose XRP ETF, you’re investing in actual XRP held in institutional-grade cold storage—not in futures contracts, company stock, or derivatives.
- You get real-time exposure to the market price of XRP
- Without the need to manage digital wallets, keys, or crypto exchanges
- In a familiar, regulated investment format
Spot vs. Futures: Why It Matters
Most early crypto ETFs were futures-based. These ETFs don’t hold the actual crypto—they hold contracts that speculate on the price of that crypto. Think of it as betting on the horse race instead of owning the horse.
Here’s a quick breakdown:
| Spot XRP ETF (like XRPP) | Futures-Based ETF | |
|---|---|---|
| Holds actual XRP | Yes | No |
| Price tracks XRP | Directly | Indirectly (may lag or lead) |
| Complexity | Simple, transparent | More opaque and harder to explain |
| Volatility | Market-driven | May experience added volatility |
For advisors and investors alike, simplicity + transparency + real exposure is the winning combo.
Why the Purpose XRP ETF (XRPP) Is Different
We launched the world’s first spot Bitcoin ETF and built one of Canada’s most comprehensive digital asset lineups. Our latest addition—XRPP—brings everything we’ve learned into a product built for today’s crypto investor.
Here’s what sets it apart:
- Institutional-Grade Protection: We’re currently the only XRP ETF in Canada with two independent custodians—Gemini and Coinbase—for an added layer of security and peace of mind.
- CAD-Hedged Option: XRPP is the only XRP ETF in Canada with a CAD-hedged class, helping protect investors from U.S. dollar currency risk.
Why Now?
Demand for XRP exposure has been growing—especially among investors who are tired of the friction that comes with direct crypto ownership. And as blockchain adoption shifts from speculation to application, XRP’s role in real-world financial infrastructure makes it uniquely positioned to grow with that trend.
The Purpose XRP ETF is our answer to that demand: a regulated, streamlined way to invest in the future of global payments.
A Practical Asset, Packaged for Real Portfolios
Crypto doesn’t have to be complicated—or chaotic. At Purpose, we believe investors deserve access without the anxiety. That’s why we’ve built an ETF platform designed to make digital asset investing smarter, safer, and simpler.
Whether you’re an advisor seeking clarity or an investor seeking exposure, XRPP delivers real access to real assets, built for real-world use.
—Paul Pincente, VP Digital Assets, Purpose Investments
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