US stock exchange MEMX has filed with the Securities and Exchange Commission (SEC) to register an XRP exchange-traded fund (ETF) as a “commodity-based trust.” MEMX’s decision to list underscores the changing perception of XRP, Ripple’s native cryptocurrency, in the financial sector.
XRP has historically been under intense scrutiny, notably from the SEC, which accused Ripple of issuing unregistered securities in 2020. However, a landmark ruling in August made it clear that XRP is not a security per se, but can be considered one under certain conditions. This complex legal outcome paves the way for XRP to be considered alongside other commodities like Bitcoin (BTC) and Ethereum (ETH).
The backdrop for MEMX’s XRP ETF filing comes amid the reelection of President Donald TRUMP, who has publicly advocated for the U.S. to be the “world’s crypto capital.” His administration’s more crypto-friendly stance has prompted exchanges like MEMX to explore new opportunities for crypto investment vehicles. The push for an XRP ETF is not only driven by regulatory changes, but also by strong market demand. Investors, both retail and institutional, are looking for new ways to participate in cryptocurrencies without the complexities of direct ownership.
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