XRP ETF Push Gains Momentum Amid SEC’s Evolving Stance

XRP ETF May Be Next: MEMX Joins the Race with New Filing
Crypto ETF Landscape Expands with New XRP and Digital Asset Proposals
XRP ETF Filing Raises Hopes for Broader Crypto Investment Options

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, similar to Bitcoin and Ethereum ETFs, which have already received approval. This filing, made on Feb. 17, is part of a growing movement to secure approval for an XRP ETF, despite the cryptocurrency’s complex legal history with the SEC. The agency sued Ripple in 2020, alleging that XRP was an unregistered security. However, a U.S. judge ruled in August 2023 that XRP is not a security—though it could be considered one under certain conditions.

Meanwhile, the Cboe BZX Exchange 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 start of the review process. Additionally, Grayscale Investments is working 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 proven successful for Bitcoin and Ethereum ETFs. Polymarket data suggests a 78% likelihood that an XRP ETF will be approved soon.

Interest in crypto ETFs has expanded well beyond Bitcoin and Ethereum. Proposals are now being made for ETFs linked to Solana (SOL), Litecoin (LTC), and even meme coins like Dogecoin (DOGE) and Official Trump (TRUMP). The SEC is also reviewing the potential inclusion of staking services in Bitcoin and Ethereum ETFs, through validator service providers or liquid staking tokens (LSTs).

In a major step forward, the Nasdaq has launched the Hashdex Nasdaq Crypto Index U.S. ETF, the first spot crypto index ETF, offering broad exposure to digital assets. These developments reflect a growing acceptance of crypto-based investment products, even as the SEC has historically been cautious in approving such products.

Following Donald Trump’s re-election on Nov. 5, 2024, speculation has risen about a shift in the SEC’s approach to crypto ETFs. His administration has appointed individuals with pro-crypto views to key regulatory positions, raising expectations for a more favorable regulatory environment for digital assets. 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 its approvals to Bitcoin and Ethereum ETFs, the increasing number of filings suggests a shifting landscape. If the SEC adopts a more open stance, additional crypto-based ETFs, including those linked to XRP and other digital assets, could soon be approved.

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