According to Cointelegraph, MEMX, a U.S. securities exchange, has submitted a request to the Securities and Exchange Commission (SEC) to list an XRP exchange-traded fund (ETF) as a "Commodity-Based Trust." This move represents the latest attempt by a U.S. exchange to introduce ETFs containing spot XRP, the native token of Ripple's XRP Ledger blockchain network. The filing underscores a shift in the SEC's approach to cryptocurrency as U.S. President Donald Trump begins his second term. In 2020, the SEC filed a lawsuit against Ripple, accusing the blockchain developer of issuing unregistered securities with the launch of the XRP token. The case saw partial resolution in August when a U.S. judge determined that the XRP token is not inherently a security but could be classified as one under specific conditions.
Listing XRP as a commodity trust would align it with spot Bitcoin (BTC) and Ether (ETH) ETFs, which were introduced in the U.S. last year. In November, 21Shares filed to list its Core XRP Trust ETF, shortly before the crypto-friendly Trump secured victory in the U.S. elections on November 5. President Trump has pledged to transform America into "the world's crypto capital" and has appointed pro-industry leaders to key regulatory positions. On February 6, another U.S. securities exchange, Cboe BZX, sought approval to list four spot XRP ETFs, including 21Shares Core XRP Trust. The SEC acknowledged the application on February 14.
A surge of filings has been observed, with issuers submitting applications to list over a dozen cryptocurrency ETFs, anticipating a more favorable stance from the Trump administration towards crypto. These include ETFs holding memecoins like Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK). Additionally, issuers have filed to list ETFs for alternative cryptocurrencies, or "altcoins," such as Solana (SOL) and Litecoin (LTC). Meanwhile, existing crypto ETFs, particularly those holding spot BTC and ETH, are now exploring the addition of new features such as staking and in-kind redemptions. Issuers are also seeking approval for several planned crypto index ETFs designed to hold diverse baskets of digital tokens. On February 14, the first spot crypto index fund, Hashdex Nasdaq Crypto Index US ETF, commenced trading on Nasdaq.
