XRP ETF Gives Institutional Access Retail Investors Can’t Get

XRP ETF offerings are giving investors access to Ripple’s native token at institutional rates, far beyond what’s available to everyday crypto buyers. This advantage was recently highlighted by Pascal St-Jean, CEO of 3iQ Digital Asset Management, in an interview with Crypto Eri, a known XRP advocate on YouTube.

St-Jean detailed how their recently launched 3iQ XRP ETF (XRPQ) capitalizes on institutional sourcing of XRP across a global liquidity network. According to him, this unique setup allows the ETF to acquire XRP at rates that are simply unattainable for individual retail investors. These wholesale rates stem from bulk purchases and strategic negotiations with regulated platforms and over-the-counter (OTC) desks.

The process begins once investors fund the ETF with cash. That capital is then dispatched across a network of global liquidity providers where 3iQ brokers XRP deals at the most competitive rates. The acquired XRP is stored in cold wallets, maintaining security while reflecting the spot market accurately through the ETF’s physically backed system.

XRP at Institutional Prices

“No retail advisor or investor could ever buy XRP at the price that we’re getting it globally,” St-Jean remarked, underscoring the big difference between retail access and institutional-grade execution. This method ensures XRPQ mirrors the spot XRP price while bolstering investor confidence in the ETF’s precision and security.

By providing direct exposure through this regulated product, 3iQ has opened a gateway for investors who previously lacked the infrastructure and legal clarity to comfortably engage with XRP on global terms.

XRPQ Surpasses Competitors in Launch Week

The launch of XRPQ on June 18 on the Toronto Stock Exchange (TSX) was met with strong market enthusiasm. Setting a competitive tone, the ETF debuted with a 0% management fee for the initial six-month period. This bold move drew immediate attention, propelling the ETF to a total asset-under-management (AUM) value of $23.21 million within just three trading days. In comparison, Purpose Investments’ XRPP—another XRP ETF launched the same day—managed only $10.7 million in AUM over the same period. More details about the launch can be found here.

St-Jean attributes part of this early success to 3iQ’s decision to waive the management fee as both a strategic marketing initiative and a thank-you gesture to the community. He affirmed that even after the promotional period ends, XRPQ aims to remain the most cost-effective XRP ETF on the Canadian market.

Ripple’s Stamp of Approval

Adding legitimacy to the offering, Ripple has also invested in the ETF. Although the financial commitment by Ripple isn’t disclosed, their backing enhances trust in XRPQ’s structural integrity and long-term vision. Importantly, all XRP acquired through the fund comes via regulated entities, which fortifies investor protection and aligns with global compliance standards.

Canadian investors can easily access XRPQ through their brokerage accounts. International investors are also eligible, provided they conform to their domestic regulatory environments, due to TSX’s availability in foreign markets.

The U.S. Waits on the Sidelines

While Canada moves quickly with not one but two spot XRP ETFs, the United States lags behind. Spot XRP ETFs are still in review by the U.S. Securities and Exchange Commission (SEC), even though futures-based XRP ETFs have started rolling out and attracting interest. Analysts believe a decision on U.S. spot XRP ETFs may arrive by October 2025. One such forward-looking opinion came from a Bloomberg expert forecasting strong demand for these funds once approved.

Paul Grewal, Chief Legal Officer at Coinbase, echoed industry frustration, stating the U.S. needs to catch up. His comments, shared shortly after Canada’s twin ETF launches, emphasized the urgent need for regulatory clarity. Grewal pointed out that Canada had already beat the U.S. to the Bitcoin spot ETF market in 2021, years before its American equivalent came online. His full commentary is available here.

Related: Expert Advice: Sell XRP If You’re Confused

For now, Canadian investors hold the upper hand when it comes to cost-effective, regulated exposure to XRP. Through products like XRPQ, 3iQ is leveraging institutional routes to bring retail-friendly investment opportunities to the mainstream crypto landscape.