MEMX has filed with the U.S. Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF), classifying it as a commodity-based trust.
MEMX has filed with the U.S. Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF), classifying it as a commodity-based trust. This puts it in the same category as Bitcoin and Ethereum ETFs, which have already been approved. The filing on Feb. 17 is part of a growing push for an XRP ETF despite the cryptocurrency’s legal history with the SEC. The agency sued Ripple in 2020, claiming XRP was an unregistered security. A U.S. judge later ruled in August 2023 that XRP is not a security, though it could be considered one under certain conditions.
Cboe BZX Exchange also submitted an application on Feb. 6 to list four XRP ETFs, including the 21Shares Core XRP Trust. The SEC acknowledged this filing on Feb. 14, marking the beginning of the review process. Meanwhile, Grayscale Investments is attempting to convert its existing XRP Trust into an ETF. MEMX’s decision to file under a commodity trust structure may improve its chances of approval, as this classification has already worked for Bitcoin and Ethereum ETFs. Data from Polymarket suggests a 78% likelihood that an XRP ETF will be approved in the near future.
Interest in crypto ETFs has expanded beyond Bitcoin and Ethereum. Proposals have emerged for Solana (SOL), Litecoin (LTC), and even meme coin-based ETFs like Dogecoin (DOGE) and Official Trump (TRUMP). In addition, the SEC is reviewing whether staking services could be included in Bitcoin and Ethereum ETFs through validator service providers or liquid staking tokens (LSTs).
The Nasdaq has also launched the first spot crypto index ETF, the Hashdex Nasdaq Crypto Index U.S. ETF, which offers broad exposure to digital assets. These developments reflect the increasing acceptance of crypto-based investment products, despite the SEC's traditionally cautious approach.
Following Donald Trump’s re-election on Nov. 5, 2024, speculation about a shift in the SEC’s stance on crypto ETFs has grown. His administration has appointed individuals with pro-crypto views to key regulatory positions, leading to expectations of a more favorable environment for digital asset products. Existing Bitcoin and Ethereum ETFs are exploring in-kind redemptions and staking features, signaling further evolution in the market.
While the SEC has so far limited approvals to Bitcoin and Ethereum ETFs, the ongoing wave of new filings suggests a changing landscape. If the regulator adopts a more open stance, additional crypto-based ETFs, including those linked to XRP and other digital assets, could soon gain approval.
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