XRP Included in Trump Index Fund! Ripple Applies for National Trust Bank License in the United States

XRP has been included in the potential “Crypto Blue Chip Stock ETF” related to Trump, accounting for 6.4% weight in the Hashdex Nasdaq Crypto Index. Analysts tracking the fund’s holdings estimate that currently over 500 million XRP tokens are held within the index fund. At the same time, Ripple is applying for a US national trust bank license, which, if approved, will enable it to directly provide cryptocurrency custody and settlement services through the US banking system.

Strategic Significance of Including XRP in the Trump Crypto Index

(Source: SEC)

Recent news about the potential crypto index fund under Truth Social has once again put XRP in the spotlight. A circulating SEC S-1 form document shows that XRP is included as a core asset in the proposed “Crypto Blue Chip ETF,” quickly reported by social media users. This inclusion carries multiple strategic implications.

First, the “Trump” brand effect cannot be underestimated. Truth Social is a social media platform controlled by the Trump family; any product related to the Trump brand attracts attention from its large supporter base. Many of these supporters are conservative investors who may view investing in Trump-related products as a combination of political statement and financial decision-making. Including XRP in this index means it will receive capital inflows from this unique investor group.

Second, positioning XRP as a “crypto blue chip” enhances its market status. The term blue chip originates from traditional finance, referring to large-cap, highly liquid, stable leading companies’ stocks. Classifying XRP as a crypto blue chip indicates it has upgraded from a speculative altcoin to an institutional-grade allocation. This shift is critical for attracting conservative institutional investors.

Recent data shows XRP accounts for about 6.4% of the Hashdex Nasdaq Crypto Index. Another suggested WisdomTree index fund could further increase XRP’s weight to 19%. These differences reflect different index construction methods, but overall, XRP’s position in institutional-grade index products is steadily rising.

Analysts estimating the fund’s holdings believe that over 500 million XRP tokens are currently held within the index fund. This accumulation has occurred in less than a month, indicating that institutional buying speed and scale surpass expectations. At current XRP prices around $2.50, this amounts to approximately $1.25 billion in assets, representing a significant structural demand.

Structural Demand Effects of Index Funds

Institutional capital flows tend to be slower than retail speculation, but over time, their impact becomes more significant. Index fund transactions are not driven by sentiment; they allocate assets based on weights and rebalance according to rules. This creates stable demand rather than sudden volatility.

Supporters believe that XRP’s inclusion in multiple index products will create a latent buy-side pressure in the market. Every new fund launch increases new structural buying pressure; each rebalancing may further transfer supply to long-term custody accounts. This demand is similar to the effect seen after Bitcoin ETF launches, but on a smaller scale.

Three Long-term Effects of Including XRP in Index Funds

Stable Structural Demand: Index funds passively buy according to weights, unaffected by short-term price swings

Reduced Circulating Supply: Tokens transferred to long-term custody accounts, continually decreasing available supply

Enhanced Institutional Recognition: Inclusion in mainstream indices reinforces XRP’s blue-chip status, attracting more allocations

However, critics remain unconvinced. Despite increasing XRP holdings, its price has declined. Some traders now question whether ETF exposure can still influence market trends as it did in the past. Others argue that index inclusion takes months rather than days to manifest effects. Current data confirms one point: XRP has become a permanent component of the crypto index economy, a fact that alone could alter large investors’ perceptions.

Ripple’s Application for Banking License and Regulatory Breakthrough

(Source: Ripple)

In addition to the index fund hype, Ripple itself is making strides toward a bigger goal. The company is actively applying for a US national trust bank license. Regulatory documents confirm that Ripple has submitted a multi-department banking license application. If approved, Ripple will operate under federal regulation, allowing it to directly provide cryptocurrency custody and settlement services through the US banking system.

The strategic value of this banking license goes beyond appearances. First, it grants Ripple legitimate banking status, enabling direct interactions with regulators like the Federal Reserve and FDIC, with protections such as deposit insurance. Second, the banking license allows Ripple to offer custody services to corporate clients, a necessary step into the institutional market. Third, regulated bank status will significantly boost traditional financial institutions’ trust in Ripple.

Supporters see this as a turning point for XRP’s long-term applications. Obtaining a US banking license could open new payment channels and strengthen institutional trust in Ripple’s infrastructure. Additionally, US regulators have confirmed that banks can legally act as intermediaries in cryptocurrency, clearing a major legal hurdle. Now, the only remaining question is timing. If the license is approved in the first half of 2026, combined with ongoing XRP index fund buying, these two catalysts could produce a resonant effect.

Contradiction Between Price and Institutional Buying

Currently, XRP faces a complex situation. On one hand, institutional investors are continuously increasing their investments via index funds; on the other hand, Ripple is striving for a regulated US banking status. Yet, the market remains hesitant, with prices continuing to decline and short-term traders lacking patience. This divergence between price and fundamentals is common in crypto markets, often occurring at the final oscillation stage before a major turning point.

The contradiction between institutional buying and price decline can be explained by time lag. Building positions in index funds is a slow and continuous process, and their full impact may take months to reflect in the price. Additionally, short-term selling pressure may come from early holders taking profits, which can suppress prices until institutional buying fully absorbs the selling.