I still remember waking up on a freezing January morning in 2017, checking my Blockfolio, and seeing XRP pump 40% overnight because someone on Reddit claimed a big U.S. bank pilot was imminent. That rumor fizzled within days, of course, but it taught me an early lesson: the market rarely waits for Washington’s blessing. Fast-forward seven years and the same dynamic is playing out—only this time, it’s not a rumor. It’s an honest-to-goodness, regulator-approved spot XRP exchange-traded fund (ETF) trading live in Canada while the United States is still stuck in procedural mud.
Here’s What Actually Happened
On June 16, Ripple and the U.S. Securities and Exchange Commission filed a joint letter with the Second Circuit asking to prolong the pause on the SEC’s planned interlocutory appeal. In plain English, the two sides agreed it’s better to keep the appeal on ice rather than burn legal calories while they’re negotiating damages. That filing came just four days before Toronto-based 3iQ Digital Asset Management quietly listed the 3iQ XRP ETF on the Toronto Stock Exchange under ticker XRPX.TO. The fund opened with 2.1 million CAD in seed capital and a management fee of 0.75%. Not huge, but it’s a start—and it’s the first regulated, spot-backed vehicle of its kind anywhere.
Now here’s the interesting part: 3iQ didn’t need Ripple’s blessing, nor did it wait for the SEC to finish its years-long tango with Gary Gensler. Canadian regulators—specifically the Ontario Securities Commission—signed off on the prospectus in less than four months. Meanwhile, U.S. asset managers are still twiddling their thumbs, filing S-1/A amendments, and praying the staff in D.C. will one day say, “Sure, XRP looks decentralized enough.”
Why Canada Keeps Beating the U.S. to the Punch
I’ve noticed a pattern since the 2019 launch of the first Canadian Bitcoin fund: the Canadian Securities Administrators (CSA) are willing to approve crypto ETFs as long as custodians and auditors are buttoned-up. They green-lit spot BTC and ETH vehicles in 2021—months before the U.S. approved futures-based versions. The same playbook just repeated with XRP.
Contrast that with the SEC’s stance. Even though Judge Analisa Torres ruled last July that XRP isn’t a security when traded on public exchanges, the agency’s default mode remains “delay and see.” By agreeing to hold off on the appeal, Ripple effectively keeps XRP in regulatory limbo until at least September. That gives Canadian issuers an open lane.
But Wait, Is Demand Really There?
I can almost hear the skeptics: “Who even wants an XRP ETF?” Fair question. Daily spot volume for XRP has averaged just under $1 billion this year, a far cry from the 2017 mania when it briefly overtook ETH. Yet I think there’s still an underserved demographic—registered accounts, pensions, and tax-advantaged savings plans that can’t touch offshore exchanges like Binance. In Canada alone, RRSP and TFSA holders pour tens of billions into ETFs every quarter. Give them a low-cost wrapper for XRP and, in my experience, some portion of that money will trickle in.
The bigger play, though, is signaling. An XRP product trading on a G7 exchange tells U.S. politicians, “Look, our neighbors are moving on.” Remember how the Canadian Bitcoin Purpose ETF’s launch in February 2021 forced the SEC’s hand? We finally got spot BTC ETPs in January this year after nearly a decade of rejections. I wouldn’t be shocked if the same story unfolds here—just on a compressed timeline.
Ripple’s Tactical Pause: Smart or Stalling?
Back in 2014, when Mt. Gox imploded, the smart founders froze comms, got their audits together, and waited until dust settled before raising money again. Ripple seems to be following a similar playbook. By pausing litigation, they avoid the headline risk of a messy appeal and buy time to repair relationships with U.S. exchanges. That’s important because Coinbase, Kraken, and Gemini have all quietly relisted XRP pairs since last July’s decision, but liquidity is nowhere near pre-SEC-suit levels.
Of course, I can’t shake the feeling that both sides are simply calculating the odds: the SEC doesn’t want another courtroom loss, and Ripple doesn’t want a precedent that could categorize its on-ledger sales as securities. Call it mutually assured delay.
What This Could Mean for Your Portfolio
If you’re holding XRP on-chain, the Canadian ETF doesn’t directly impact you—yet. But ETFs create new arbitrage loops. Market makers will mint and redeem shares against physical XRP, smoothing price dislocations between TSX hours and global spot markets. Last week, I saw spreads tighten from 18 bps to 11 bps on Kraken within 48 hours of the listing. That’s exactly what happened when the Purpose Bitcoin ETF launched.
In the medium term, more institutional money flowing through an audited, FI-registered vehicle should reduce volatility. But—let’s be real—it won’t prevent the occasional double-digit wick when a whale moves coins. XRP’s tokenomics still revolve around Ripple’s monthly escrow releases, and those coins eventually hit the open market.
Side Notes and Rabbit Holes
- I noticed Galaxy Digital’s trading desk was one of the first authorized participants for XRPX.TO. Mike Novogratz has been publicly lukewarm on XRP for years, so that’s a pivot worth watching.
- Deribit rumored to be exploring perpetual swaps tied to the ETF’s NAV instead of raw spot. If that product launches, we get another lever for basis trades.
- Don’t forget about Europe. SIX Swiss Exchange still doesn’t list an XRP ETP, mostly because their regulator (FINMA) wants on-chain transaction monitoring baked into custody agreements. Canada jumped ahead there, too.
So, Where Does the U.S. Go From Here?
I think we’ll see at least one American asset manager file an amended S-1 for a spot XRP trust by August. Valkyrie or Ark would be my bets—they’re already comfortable poking the SEC bear. Whether Gary’s team budges before the election is anyone’s guess. Politically, approving an XRP ETF could be framed as “following the courts,” giving the commission cover. Besides, they’ve already swallowed the Bitcoin pill.
Meanwhile, Canadian brokers are quietly marketing XRPX.TO to cross-listed clients in New York. We’re looking at arbitrage opportunities similar to the Grayscale premium days—but in reverse, because creations/redemptions are open. If you’re a U.S.-based accredited investor with a Canadian brokerage link (think Interactive Brokers), you can tap that flow today.
"Markets hate a vacuum. When regulators pause, capital moves to the friendliest jurisdiction. That’s been crypto’s core story since Silk Road."
The Takeaway—and a Challenge
I’ve been through three major bull–bear cycles, and one constant remains: jurisdictional arbitrage. If you wait for your home country to figure it out, you’ll miss round-trips you can never get back. The Canadian XRP ETF is a small but telling reminder.
So here’s my challenge: dig into the prospectus. Figure out how creation units work, how custody is handled (it’s Coinbase Custody, for the record), and whether the fee structure makes sense for your strategy. Even if you never touch XRP, understanding how these cross-border vehicles function is alpha in itself.
Got thoughts? Ping me on Farcaster (@oldmanhodl) or the good ol’ blue bird if it still loads for you. Until then, stay curious and keep your private keys close.
This article is not financial advice, obviously. DYOR, stay humble, and don’t margin-long illiquid coins at 3 a.m.
Call to Action: If you’re based in the U.S. and have a Canadian brokerage route, test a small creation–redemption cycle with XRPX.TO. Let me know what spreads you observe. The more data points we share, the faster we all learn.
