- MEMX files for SEC approval to list XRP ETF as commodity trust.
- XRP ETF could position the token alongside Bitcoin and Ether ETFs.
- US exchanges seek crypto ETF approvals as regulatory stance shifts.
MEMX’s recent request to the SEC to list the 21Shares XRP ETF reflects a broader trend of crypto-related financial products gaining traction in the U.S. As XRP aims to join Bitcoin and Ether, the regulatory landscape continues to evolve.
MEMX Files to List XRP ETF
MEMX, a US-based securities exchange, has filed a request with the Securities and Exchange Commission (SEC) for approval to list a new XRP-based exchange-traded fund (ETF). The ETF would be classified as a “Commodity-Based Trust,” similar to spot Bitcoin and Ether ETFs.
If approved, this ETF would position XRP alongside other major cryptocurrencies like Bitcoin and Ether, which have seen successful ETF launches. These products attract institutional investors and other major players in the market. This shift reflects the growing acceptance of cryptocurrency as an asset class.
Crypto Regulation in U.S
The SEC’s previous legal actions against Ripple have created uncertainty around the token’s status. In 2020, the SEC sued Ripple over alleged issuance of unregistered securities. However, a US judge recently ruled that XRP is not inherently a security but could qualify as one under certain circumstances.
The regulatory environment has recently changed, especially with the election of President Donald Trump. Industry experts expect Trump’s administration to adopt a more favorable stance toward cryptocurrencies. Trump’s victory in November 2024 has led to increased optimism within the crypto community, and many believe that the SEC will adjust its approach.
Institutional Interest in Crypto Products
Moreover, there is increased diversification in the ETF landscape with increased attention for Dogecoin, Solana, and Litecoin-based funds filings. On the other hand, existing crypto ETFs are expanding their offerings to include staking features and in-kind redemptions.
The move comes amid increased anticipation for the approval of XRP-related products. The exchange’s request aligns with the broader trend of US exchanges that seek approval to list spot crypto ETFs. Earlier in February, Cboe BZX also applied to list several spot XRP ETFs such as 21Shares’ Core XRP Trust.
This increased regulatory activity coincides with the debut of several new crypto index funds. On February 14, the first spot crypto index fund, Hashdex Nasdaq Crypto Index US ETF, began trading on Nasdaq.
Price Action
The potential approval of XRP-based ETFs has generated strong market interest, with increased expectation of a rally in the price of XRP. Over the past few months, whales have accumulated massive XRP fueling speculation about a potential surge in the token’s value. Many market participants expect XRP to challenge Bitcoin’s dominance, especially as the Ripple case comes close to a potential resolution.