Canada Launches Zero-Fee XRP ETF, Outpacing U.S. in Crypto Innovation

Purpose Investments, one of Canada’s top asset managers, has officially launched a spot-based XRP ETF with zero management fees until February 2026. After that, an annual fee of 0.69% will apply. The fund’s total management expense ratio (MER) is capped at 0.89%, ensuring that investors won’t pay more in overall fund costs.

This move makes Purpose’s XRP ETF one of the most cost-efficient options for cryptocurrency exposure in traditional markets. As of June 18, the fund had CAD $8.3 million in assets under management. Like most ETFs, the fee will cover portfolio management, custody, compliance, and operational expenses.

Alongside Purpose, two other Canadian firms—3iQ and Evolve—also launched spot XRP ETFs after receiving approval from the Ontario Securities Commission (OSC). This triple launch marks a milestone, positioning Canada ahead of the United States in rolling out regulated XRP investment products. Notably, Canada was also the first country to launch a spot Bitcoin ETF in 2021.

The U.S. Securities and Exchange Commission (SEC) has yet to approve any spot XRP ETFs, despite mounting pressure and interest. Coinbase’s chief legal officer, Paul Grewal, highlighted Canada’s regulatory clarity as a key factor driving financial innovation. Meanwhile, the prediction market Polymarket estimates a 90% chance that an XRP ETF will be approved in the U.S. by the end of 2025.

Canada’s aggressive stance on digital asset ETFs could signal a shifting landscape for global crypto adoption and regulatory leadership, especially as institutional investors seek efficient, compliant access to crypto markets like XRP.