Author: Paul L.

Canada and North America’s first spot XRP exchange-traded fund (ETF), launched by Purpose Investments, is showing signs of strength following a choppy debut.

Trading on the Toronto Stock Exchange (TSX), the fund surged 11.89% on June 30, closing at $10.63. Over the past five days, the ETF has gained 6.19%, and since its inception on June 18, it is up 7.37%.

This resurgence comes despite the underlying XRP cryptocurrency struggling to break through key resistance levels. The ETF had initially mirrored the broader weakness in XRP, but appears to be decoupling somewhat in recent sessions.

The product is only the second spot XRP ETF globally, following Brazil’s Hashdex XRP offering. Purpose Investments charges a management fee of 0.69%, capped at 0.89%, with any cost savings passed on to investors. 

Notably, Canadian residents can hold the ETF in tax-advantaged accounts such as TFSAs and RRSPs, making it an attractive vehicle for diversified crypto exposure.

U.S. next to approve XRP ETF? 

While the Canadian and Brazilian launches have had limited impact on XRP’s global price so far, bigger developments could be on the horizon.

The U.S. Securities and Exchange Commission (SEC) recently requested public input on spot XRP and Solana ETF proposals from Franklin Templeton and WisdomTree.

If approved, these products would be listed on Cboe’s BZX Exchange, potentially unlocking significant institutional participation and liquidity, marking the first such offering just south of the Canadian border.

XRP price analysis

Meanwhile, XRP’s price action continues to lag. At press time, the token was trading at $2.20, up 1% in the past 24 hours, but only 0.8% higher over the week.

The key challenge remains a decisive break above the $2.25 resistance level, which could pave the way for a push toward $2.50.

Featured image via Shutterstock

Canada’s first spot XRP exchange-traded fund (ETF), launched by Purpose Investments under the ticker XRPP.U, has had a tough start since debuting on the Toronto Stock Exchange (TSX) on June 18.

This product is the world’s second spot XRP ETF, following Brazil’s Hashdex offering.

Notably, the Purpose XRP ETF closed 1.63% lower at $9.68 on Friday, June 20, 2024, extending its post-launch decline as light trading kept it near its session low.

Since its launch, the new fund, also available in CAD-hedged (XRPP) and CAD non-hedged (XRPP.B) versions, has mostly trended lower, reflecting XRP’s overall market performance. 

This aligns with the performance of the Brazilian ETF, which has fallen about 7.50% since its debut, partly due to weaknesses in the underlying XRP token.

Purpose’s new ETFs have a management fee of 0.69%, capped at 0.89%, with any savings passed on to investors. For Canadians, the funds can also be held in tax-friendly accounts like TFSAs and RRSPs, giving investors easy crypto exposure within traditional portfolios.

These new products have had little effect on XRP’s price so far, likely because Canada and Brazil have much smaller financial markets than the United States.

Looking ahead, U.S. regulators are paying more attention to launching their spot XRP ETFs, with several applications under consideration. 

To this end, the Securities Exchange Commission (SEC) recently invited public comments on Franklin Templeton’s and WisdomTree XRP Trust’s proposed XRP and Solana ETFs. If approved, these ETFs would trade on Cboe’s BZX Exchange.

XRP price analysis 

Meanwhile, both existing XRP ETFs continue to trade in sync with XRP, which is under bearish pressure. At press time, the asset was valued at $2.13, down nearly 1%, and over the past week, it has lost about 1.7%.

From a technical perspective, XRP is trading below its 50-day simple moving average (SMA) of $2.30. This shows short-term weakness and sustained downward pressure. However, it is still well above its 200-day SMA of $1.85, indicating that its long-term uptrend remains intact and the broader outlook is still positive.

Additionally, the 14-day Relative Strength Index (RSI) is at 45.07, a neutral level that suggests XRP is neither overbought nor oversold.

Featured image via Shutterstock