3IQ’s Zero-Fee XRP ETF Smashes $50M Milestone—Backed by Ripple’s Stamp of Approval

Ripple’s favorite ETF just flipped the script. 3IQ’s XRP fund—a rare zero-fee crypto ETF—cracked $50M in record time, proving institutional appetite isn’t just Bitcoin’s playground.

Why Traders Are Buzzing

No fees? Check. Ripple’s tacit endorsement? Double-check. This isn’t your grandad’s index fund—it’s a hedge fund’s backdoor into the ‘too volatile for pensions’ crowd.

The Cynic’s Corner

Wall Street still won’t touch XRP’s regulatory baggage—unless it’s wrapped in an ETF, apparently. Nothing solves ‘is this a security?’ doubts like slapping a ticker on it.

Zero Fees, Full Transparency Draw Investor Interest

The key reason for the ETF’s fast growth is its six-month fee-free structure. During this period, investors pay no management fees, which makes the fund stand out from other crypto ETFs that typically charge high premiums. This zero-fee model has made it easier for both retail and institutional investors to gain exposure to XRP without extra costs eating into their returns.

In addition to low costs, the ETF offers full regulatory compliance. It sources its XRP from regulated exchanges and over-the-counter (OTC) trading partners, ensuring all assets meet high standards of security and transparency. These factors have made the fund more attractive to investors who want to avoid the risks tied to unregulated crypto platforms.

Ripple Labs’ Involvement Adds Credibility

Another major factor fueling confidence in the fund is the involvement of Ripple Labs, the company behind XRP. Ripple provided seed investment to help launch the fund. Their participation signals strong industry backing and confidence in XRP’s long-term potential. Ripple is already known for building blockchain solutions used by banks and payment companies, and its support adds credibility to the ETF.

With this backing and infrastructure, 3iQ’s XRP ETF has become the largest XRP-focused fund in Canada, offering a regulated, secure, and cost-effective way to invest in one of the world’s most widely-used cryptocurrencies.

ETF Structure Designed for Security and Compliance

The fund, listed under XRPQ and XRPQ.U, offers two different trading options for investors, depending on whether they prefer Canadian or U.S. dollar exposure. All assets in the ETF are kept in cold storage with full segregation—meaning each investor’s holdings are stored separately for added security.

This setup reduces the risk of loss from hacks or technical failures, which have often troubled the crypto space. The ETF is also eligible for registered accounts in Canada, such as Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP), making it even more attractive for long-term investors.

3iQ’s CEO: Demand Is Growing for Regulated Crypto Products

In a statement, Pascal St-Jean, the president and CEO of 3iQ, highlighted the growing demand for regulated and transparent crypto investments. He pointed out that investors are becoming more thoughtful about where they put their money and are now choosing products that offer a mix of security, accessibility, and cost-efficiency.

“This milestone for our XRP ETF shows continued strong interest in crypto assets,” said St-Jean. “It also shows how investors, both retail and institutional, are getting smarter with their decisions, looking for quality over hype.”

His comments reflect a larger shift happening in the crypto market. Rather than chasing risky or unregulated tokens, more investors are now choosing options that are regulated, secure, and backed by real-world utility—all qualities XRP and the ETF aim to provide.

Why XRP? A Real-World Use Case for Cross-Border Payments

XRP stands out from many other digital assets because it has a clear use case in international payments. Ripple’s network allows for fast and low-cost cross-border transactions, which is something traditional banking systems struggle with. This has helped XRP gain growing adoption among financial institutions worldwide.

As XRP continues to gain institutional interest, ETFs like 3iQ’s XRPQ are becoming a gateway for investors who want to gain exposure to digital finance without holding crypto directly. This is especially useful for those who may not want to deal with wallets, private keys, or complicated exchange platforms.

The Bottom Line: XRP ETF Could Signal Next Big Shift in Crypto Investing

The success of 3iQ’s XRP ETF is not just a win for the company—it may also mark a broader shift in how people invest in digital assets. With $50 million in assets raised in under a month, it’s clear that the demand for regulated, cost-efficient crypto exposure is growing fast.

As more investors look to hedge against inflation and diversify their portfolios, products like XRPQ could become central to the next wave of crypto adoption. With backing from Ripple, zero fees, and tight regulation, this ETF may be the model for future digital asset investments.