"MEMX Seeks SEC Nod for XRP ETF Amidst Crypto Market Growth"

U.S. securities trading platform MEMX has submitted an application to the U.S. Securities and Exchange Commission (SEC) to list the 21Shares XRP ETF as a "commodity-based trust" permit. This marks another attempt by a U.S. trading platform to list an ETF containing spot XRP for trading.

The application highlights a shift in the SEC's stance on cryptocurrency, particularly since Donald Trump began his second term as President of the United States. In 2020, the SEC sued Ripple, alleging that the blockchain development company had issued unregistered securities when it launched the XRP token. However, a U.S. judge later ruled that the XRP token itself is not a security, but may meet the definition of a security under certain circumstances.

If approved, the 21Shares XRP ETF would allow investors to gain exposure to XRP, the third-largest cryptocurrency by market capitalization, without having to hold the digital asset directly. The ETF would be structured as a "commodity-based trust," which is a type of investment vehicle that holds physical assets, such as commodities or cryptocurrencies, and issues shares to investors.

The application comes as the cryptocurrency market continues to grow and evolve, with increasing interest from institutional investors. The SEC has been grappling with how to regulate cryptocurrencies and initial coin offerings (ICOs) for several years, and the agency has taken a more cautious approach to approving ETFs that hold cryptocurrencies.

In recent months, several other ETF providers have submitted applications to the SEC to list cryptocurrency ETFs, including VanEck, Bitwise, and Grayscale. However, the SEC has not yet approved any of these applications, and the agency has not provided a timeline for when it may make a decision on the 21Shares XRP ETF application.

The SEC's decision on the 21Shares XRP ETF application will be closely watched by the cryptocurrency community, as it could signal a shift in the agency's approach to regulating cryptocurrencies and ETFs. If approved, the ETF could provide a new way for investors to gain exposure to XRP and other cryptocurrencies, potentially driving further growth and adoption in the market.