MEMX, a U.S. securities exchange, has filed with the Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF) as a “Commodity-Based Trust.” This initiative by MEMX is a part of a broader trend among U.S. exchanges seeking to list ETFs containing spot XRP—the native token of Ripple’s XRP Ledger blockchain. This move indicates a shift in the SEC’s approach to cryptocurrency following U.S. President Donald Trump’s second-term commencement. In 2020, the SEC initiated a lawsuit against Ripple, accusing it of issuing unregistered securities when it launched the XRP token. However, a partial resolution was reached in August with a judge ruling that the XRP token is not inherently a security, although it might qualify as one in specific instances.
Classifying the ETF as a commodity trust would categorize XRP alongside spot Bitcoin and Ether ETFs, which became available in the U.S. the previous year. 21Shares filed to list its Core XRP Trust ETF in November, just before Trump secured victory in the U.S. elections on November 5. With a vision of making America “the world’s crypto capital,” Trump has appointed pro-industry leaders to crucial regulatory roles.
Similarly, on February 6, Cboe BZX, another U.S. exchange, requested authorization to list four spot XRP ETFs, including 21Shares Core XRP Trust. The SEC acknowledged this application on February 14.
The cryptocurrency industry is witnessing a frenzy of ETF filings as issuers anticipate a more favorable stance from the Trump administration toward digital assets. Companies aim to list ETFs involving various cryptocurrencies, including memecoins like Dogecoin and other altcoins such as Solana and Litecoin. Additionally, current crypto ETFs focusing on Bitcoin and Ether are exploring new functionalities like staking and in-kind redemptions.
Issuers are also seeking approval for crypto index ETFs that would hold diversified baskets of digital tokens. Notably, the first spot crypto index fund, Hashdex Nasdaq Crypto Index US ETF, began trading on Nasdaq on February 14.
