If you’ve been searching for an XRP ETF in Canada, you’re not alone. Since Canada launched the world’s first spot XRP exchange-traded funds in June 2025, Canadian investors have been asking whether this new product belongs in their portfolio — and how it compares to buying XRP directly. This guide covers everything you need to know: what XRP ETFs are, which ones are available on the TSX, how they work inside registered accounts, and what to consider before you get started.
Disclaimer: This article is for educational purposes only and does not constitute financial or investment advice. Cryptocurrency markets carry significant risk. Please consult a qualified financial professional before making any financial decisions.
What Is an XRP ETF?
An exchange-traded fund (ETF) is a regulated investment product that trades on a stock exchange like a regular share. An XRP ETF holds actual XRP cryptocurrency on behalf of investors, allowing you to gain exposure to XRP’s price movements without ever creating a crypto wallet or managing private keys.
Instead of going through a crypto exchange, you buy units of the ETF through your brokerage account — the same way you’d buy shares of a company. The fund manager handles custody, security, and compliance on your behalf.
For Canadians who want exposure to what XRP is and how it works, but who are more comfortable with the traditional investment infrastructure, an ETF lowers the barrier to entry significantly.
Canada’s XRP ETFs: What’s Available on the TSX
On June 18, 2025, Canada became one of the first countries in North America to list spot XRP ETFs on the Toronto Stock Exchange. Two major asset managers launched products on the same day:
| ETF Name | Ticker | Manager | Management Fee | Currency Options |
|---|---|---|---|---|
| Purpose XRP ETF | XRPP / XRPP.B / XRPP.U | Purpose Investments | 0.69% (waived until Feb 2026) | CAD hedged, CAD unhedged, USD |
| 3iQ XRP ETF | XRPQ / XRPQ.U | 3iQ Corp. | 0% for first 6 months, then standard rate | CAD, USD |
By early 2026, XRP ETFs in Canada were collectively managing over $1.6 billion CAD in assets — a clear signal of strong investor demand. Purpose Investments is the same firm that launched the world’s first spot Bitcoin ETF in 2021, and 3iQ is Canada’s leading regulated digital asset fund manager, with Ripple Labs itself as an early investor in XRPQ.
XRP ETF vs. Buying XRP Directly: Key Differences
Both routes give you exposure to XRP’s price, but the experience and trade-offs are quite different. Here’s a straightforward comparison:
| XRP ETF (XRPP / XRPQ) | Buying XRP Directly | |
|---|---|---|
| Where you buy | Your brokerage account (stock market) | Crypto exchange or broker |
| TFSA / RRSP eligible | Yes | No |
| You own XRP directly | No — the fund holds it | Yes |
| Management fee | 0.69% annually (or similar) | None (transaction fees only) |
| Wallet/custody required | No | Yes (recommended) |
| Transfer or send XRP | No | Yes |
| Regulatory protection | OSC-regulated product | FINTRAC-registered brokers only |
The ETF route is simpler and fits neatly into a registered account strategy. Buying XRP directly gives you full ownership of the asset — you can transfer, hold, or use it as you see fit. Neither option is universally better; it depends on your goals.
Can You Hold an XRP ETF in Your TFSA or RRSP?
Yes — and this is one of the most compelling reasons Canadians are choosing the ETF route. Because XRP ETFs trade on the TSX as regulated securities, they qualify as eligible investments for Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs).
This means any gains you make inside a TFSA are completely tax-free, and gains inside an RRSP are tax-deferred until withdrawal. For long-term investors, that’s a significant advantage that you simply cannot get by buying XRP directly on a crypto exchange.
If you’re exploring how registered accounts interact with crypto, our guides on Bitcoin in your RRSP and crypto in a TFSA cover the mechanics in detail.
What Drives XRP’s Price?
Understanding what moves XRP’s value matters whether you choose the ETF or direct ownership route. A few key factors to know:
- Regulatory clarity: XRP’s price has historically been sensitive to legal and regulatory developments, particularly Ripple Labs’ long-running dispute with the U.S. Securities and Exchange Commission. The resolution of that case significantly boosted confidence in XRP.
- Adoption in cross-border payments: XRP is designed for fast, low-cost international transfers. Partnerships between Ripple and financial institutions influence the asset’s perceived utility and demand.
- Broader crypto market sentiment: Like all cryptocurrencies, XRP tends to move in correlation with Bitcoin during major bull and bear cycles.
- ETF inflows: Institutional demand through regulated ETF products can influence XRP’s price in ways not seen before 2025.
For a full breakdown of what XRP is and how its network functions, see our dedicated page on what XRP is.
ETF or Direct Ownership — How to Decide
There’s no one-size-fits-all answer, but here are some guiding principles:
- If your primary goal is tax-sheltered growth inside a TFSA or RRSP, the ETF is worth serious consideration.
- If you want to actually hold and control XRP — transfer it, use it, or move it off a platform — you need to buy XRP directly.
- If you’re new to crypto and want exposure without managing wallets or private keys, the ETF lowers the learning curve.
- If fees are a concern, direct ownership has no ongoing management fee — only the transaction cost at the time of purchase.
Many Canadians end up doing both: holding some XRP directly for flexibility, and holding ETF units inside their registered accounts for tax efficiency.
Key Risks to Understand
Whether you choose an ETF or direct ownership, XRP carries meaningful risk:
- Cryptocurrency values can drop sharply and without warning. XRP has historically seen drawdowns of 80% or more from its peak.
- ETFs carry management fees that erode returns over time, especially in flat or sideways markets.
- Even with regulatory ETF wrappers, the underlying asset remains highly volatile and speculative.
- Tax treatment depends on your specific situation — capital gains inside a TFSA are sheltered, but gains outside registered accounts are taxable events.
How Crypto Experts Can Help
Choosing between an XRP ETF and direct ownership isn’t just a product decision — it connects to your broader financial picture: your risk tolerance, tax situation, registered account room, and long-term goals. At Crypto Experts, our team provides personalised guidance to help Canadians make informed decisions about digital assets.
We’re a FINTRAC-registered cryptocurrency brokerage with locations across Canada. If you’d like to talk through your options before committing to any approach, explore our services or book a consultation — no jargon, no pressure.
Frequently Asked Questions
Is the Purpose XRP ETF available in a TFSA?
Yes. The Purpose XRP ETF (XRPP) trades on the TSX and qualifies as an eligible investment for TFSAs and RRSPs. You can purchase it through any Canadian brokerage that provides access to TSX-listed securities.
What is the management fee for XRP ETFs in Canada?
The Purpose XRP ETF charges a management fee of 0.69% annually. This fee was waived through February 2026 as a promotional rate. The 3iQ XRP ETF (XRPQ) initially waived its fee for the first six months after launch in June 2025. Always check the fund’s current prospectus for the most up-to-date fee information.
Do I own actual XRP if I buy an ETF?
No. When you buy an XRP ETF, you own units of the fund — not XRP directly. The fund manager holds the XRP on your behalf. This means you cannot transfer, send, or use the XRP itself.
Is buying XRP directly legal in Canada?
Yes. Canadians can legally buy, hold, and sell XRP through FINTRAC-registered cryptocurrency brokers and exchanges. XRP is not a banned asset in Canada.
How is an XRP ETF taxed outside of a registered account?
Outside a TFSA or RRSP, gains from XRP ETF units are subject to capital gains tax, just like any other investment. The Canada Revenue Agency (CRA) considers 50% of capital gains to be taxable income. We strongly recommend consulting a tax professional for guidance specific to your situation.
Can I buy XRP ETFs through my bank’s brokerage platform?
Yes, in most cases. Because XRP ETFs are listed on the TSX, they are accessible through any standard Canadian brokerage — including platforms offered by the major banks. Check with your specific brokerage to confirm availability and any account eligibility requirements.
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