The objective investment has been approved by regulatory authorities to launch Canada’s first XRP ETF. The new product will be exposed directly to XRP and will begin trading on June 18th.
Additionally, OSC allows customers to keep this product in their registered account, allowing them to pay significantly lower taxes on their profits. This regulatory breakthrough is encouraging, as Canada’s new PM is a bitcoin critic.
Canada approves XRP ETF before US
XRP ETFs are coveted crypto-based financial products, but only one country actually offers it in the market. The competition for approval has seen many set-offs in the US, but overall optimism remains high.
This week, one company will turn Canada into a second country to offer this product, as announced in a press release.
Purpose Invest, a Toronto-based asset management company, has received final regulatory approval to provide XRP ETFs.
The Ontario Securities Commission (OSC), Canada’s leading regulator, allows users to keep this ETF in their registered accounts. Under Canadian law, this means that customers can pay significantly lower taxes on these assets.
“OSC granting receipts of purpose strengthens Canada’s global leadership in building a regulated digital asset ecosystem for the XRP ETF prospectus. We are proud to continue pushing the boundaries of what is possible in space.”
Over the past few years, Canada has established itself as a crypto leader, launching its first crypto ETF in North America four years ago.
Purpose investments also created this asset. A significant portion of Canadian institutional investors hold crypto, and the country last year allowed Coinbase to secure a registration license.
However, the well-known Bitcoin critic became prime minister this March, which could disrupt the country’s policies. In other words, it is a very good indication that OSC has approved the XRP ETF under these circumstances.
Hopefully this will help the SEC encourage similar products to advance in the US.
BlackRock, the largest asset manager in the United States, has yet to file for a spot product based on XRP, but notable analysts believe it will soon do so.
The SEC is working hard with Ripple to resolve ongoing legal disputes. This could help to facilitate approval of XRP ETFs.
At this point, it is impossible to predict when it will win approval, but the US will become the hemisphere’s third country that will provide it at the earliest. Canada and Brazil may remind the US that they need to keep up to stay on the cutting edge of the market.
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