The launch of Canada’s first physically backed XRP exchange-traded fund (ETF), the 3iQ XRP ETF (XRPQ), has sparked significant interest in the crypto investment community. At the center of this momentum is Pascal St-Jean, CEO of 3iQ Digital Asset Management, who recently revealed how institutional-grade access is reshaping how investors gain exposure to XRP—a digital asset often associated with Ripple Labs.
Unlike retail buyers purchasing XRP through public exchanges, 3iQ leverages a sophisticated global network of liquidity providers to acquire the asset at rates far below what individual traders can achieve. In an interview with popular XRP advocate and YouTuber Crypto Eri, St-Jean emphasized that this structural advantage is foundational to the ETF’s value proposition.
“No retail advisor or investor can buy XRP at the prices we access globally.”
– Pascal St-Jean, President & CEO, 3iQ
This pricing edge stems from bulk execution strategies and exclusive trading channels that only large institutions can negotiate. Once acquired, the XRP is securely stored in cold wallets, ensuring full transparency and safety. The fund operates on a physically backed model, meaning every share of XRPQ directly represents ownership of actual XRP tokens—no derivatives, no synthetic exposure.
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How the 3iQ XRP ETF Works
Investors in XRPQ don’t buy XRP directly. Instead, they contribute cash, which 3iQ uses to source XRP across regulated platforms and over-the-counter (OTC) desks worldwide. This process allows the firm to aggregate volume, minimize slippage, and secure favorable pricing.
Key operational highlights include:
- Global liquidity aggregation: Access to multiple OTC desks ensures optimal pricing.
- Cold storage security: All purchased XRP is held in offline wallets, reducing cyber risks.
- Real-time price tracking: The ETF closely mirrors the spot price of XRP, offering transparent performance.
- Regulatory compliance: Fully registered and listed on the Toronto Stock Exchange (TSX), providing a compliant gateway for both retail and institutional investors.
This structure not only enhances efficiency but also introduces a new standard for trust and accessibility in digital asset investing.
XRPQ Outperforms Competitors on Launch
Launched on June 18, 2025, the 3iQ XRP ETF (XRPQ) quickly established dominance in Canada’s emerging XRP ETF landscape. Within just three trading days, it raised $23.21 million in assets, making it the largest XRP ETF in the country.
In contrast, Purpose Investments’ competing product, XRPP, launched on the same day but managed to gather only $10.7 million during the same period. This significant gap underscores investor confidence in 3iQ’s execution strategy and brand reputation in the Canadian digital asset space.
One major factor driving early adoption? A 0% management fee for the first six months.
St-Jean described this promotion as a “thank you” to the crypto community—particularly long-term XRP supporters who have advocated for regulated financial products tied to the asset. But even after the waiver period ends, he asserts that XRPQ will remain one of the most cost-efficient ways to gain exposure to XRP in North America.
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Ripple’s Strategic Backing Adds Credibility
Adding further legitimacy to the fund, Ripple itself has invested in XRPQ, though the exact amount remains undisclosed. This strategic move signals Ripple’s endorsement of regulated financial products that promote broader adoption of XRP.
Importantly, all XRP acquired by 3iQ comes exclusively from regulated exchanges and OTC platforms, aligning with Ripple’s long-term vision of institutional integration and compliance. The goal is not short-term speculation but long-term holding and ecosystem growth.
Canadian investors can purchase shares of XRPQ through registered brokerage accounts, while international institutions may access the fund via TSX trading—subject to local regulatory frameworks.
FAQ: Your Questions About the 3iQ XRP ETF Answered
Q: What makes the 3iQ XRP ETF different from buying XRP on an exchange?
A: The ETF offers institutional pricing, enhanced security via cold storage, and regulatory oversight—advantages most retail investors cannot access when trading directly.
Q: Is the 0% management fee permanent?
A: No, it applies only for the first six months after launch. However, 3iQ has committed to maintaining one of the lowest ongoing fee structures in the market.
Q: How is the ETF taxed compared to holding XRP directly?
A: In Canada, ETFs are typically treated as securities for tax purposes, which may offer more predictable capital gains treatment than direct crypto holdings subject to barter transaction rules.
Q: Can U.S. investors buy XRPQ?
A: While the ETF trades on the TSX, U.S. investors may participate through certain international brokerage accounts—though they should consult a tax or financial advisor due to cross-border implications.
Q: Does the ETF use futures or spot XRP?
A: XRPQ is a spot ETF, meaning it holds actual XRP tokens, not futures contracts or synthetic derivatives.
The U.S. Wait for a Spot XRP ETF Continues
While Canada advances with regulated crypto products, U.S. investors are still waiting. Although futures-based XRP ETFs have launched in recent months, a spot XRP ETF remains under review by the U.S. Securities and Exchange Commission (SEC).
There is growing speculation that a decision could come by October 2025, mirroring previous timelines seen with Bitcoin and Ethereum ETF approvals. If approved, it would mark a major milestone for crypto regulation in the United States.
In the meantime, voices like Paul Grewal, Coinbase’s Chief Legal Officer, are calling for clearer regulatory pathways. He recently highlighted that Canada approved its first Bitcoin spot ETF in 2021—nearly three years before the U.S. followed suit—and now it’s leading again with XRP products.
This regulatory lag raises concerns about innovation flight and investor protection gaps in the American market.
Final Thoughts: A New Era for Institutional XRP Investing
The success of the 3iQ XRP ETF reflects a broader trend: institutional demand for compliant, efficient, and secure crypto investment vehicles is rising. With advantages like global pricing power, cold storage security, and regulatory clarity, products like XRPQ are setting new benchmarks.
For investors seeking exposure to XRP without managing private keys or facing exchange volatility, the ETF offers a compelling alternative. And with Ripple’s backing and strong early adoption, momentum appears to be building fast.
As global markets evolve and regulators adapt, Canada’s leadership in crypto ETF innovation may serve as a blueprint for others—including the United States—to follow.
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