U.S. Exchange Seeks SEC Approval for XRP-Based ETF
In a major step toward expanding cryptocurrency investment options, the Members Exchange (MEMX), a U.S. securities exchange, has applied to the Securities and Exchange Commission (SEC) to list the 21Shares XRP exchange-traded fund (ETF) as a “Commodity-Based Trust.” If approved, this ETF would allow investors to gain exposure to XRP—Ripple’s native token—without directly holding the digital asset.
Rising Interest in Crypto ETFs
This filing aligns with a broader trend of increasing institutional interest in cryptocurrency ETFs. The SEC has already approved ETFs for Bitcoin and Ethereum, leading to substantial inflows and growing mainstream adoption. A green light for an XRP ETF could further diversify crypto investment opportunities while potentially boosting liquidity for XRP.
The regulatory environment for crypto appears to be evolving, especially following the inauguration of President Donald Trump. His administration has signaled a pro-crypto stance, with the expected appointment of Paul Atkins—an advocate for digital assets—as the new SEC Chair. This shift in leadership could lead to a more supportive approach toward crypto ETFs, increasing the chances of approval for XRP and other blockchain-based financial products.
Legal Clarity on XRP’s Status
XRP’s regulatory standing has been a contentious issue since the SEC’s 2020 lawsuit against Ripple, which alleged the company sold unregistered securities. However, a partial court ruling in August 2023 determined that XRP itself is not inherently a security, though certain sales may still be classified as such. This ruling has provided clearer guidelines for financial institutions like MEMX and 21Shares to explore regulated investment products centered on XRP.
The crypto community is closely watching these developments, as an approved XRP ETF could have significant effects on the asset’s market value and adoption. As of February 18, 2025, XRP is trading at approximately $2.58, reflecting a slight decline of 0.03731% from the previous close. The introduction of an ETF could attract institutional investors, further shaping XRP’s market trajectory.
