Are XRP ETFs About To Act Like Banks? Expert Thinks So

[Ben Graham]

US Senate debate over a bill called the Clarity Act has reignited discussion about XRP and other crypto products, and how they might be treated under US rules.

Reports have disclosed that the bill could give clearer status to tokens that back US-listed ETFs, moving them closer to commodity-style treatment.

XRP spot ETFs have also drawn large capital, with inflows reaching about $1.37 billion since their November 2025 launch — a figure that underlines why lawmakers and market watchers are paying attention.

How It Works

Creation and redemption in ETFs can happen “in kind,” which means the fund can accept the actual asset instead of cash.

That mechanism is real, but it does not let ordinary buyers load tokens directly into a fund. Authorized participants — big broker-dealers and market makers — are the ones that hand tokens to ETFs and receive shares back.

Everyday investors buy or sell ETF shares on exchanges. That gap is central to the debate about whether an ETF could ever function like a bank.

The XRP ETF’s are also In-Kind Funds, so you can deposit XRP directly into the fund in exchange for the exact value in shares.

Most in general will choose this option post law. There are many advantages to this, you will be able to use the ETF like a “bank”. https://t.co/2G49kxUpGc pic.twitter.com/4fyeOkEYTC

— Chad Steingraber (@ChadSteingraber) January 13, 2026

What Community Voices Are Saying

According to posts from XRP community figures, some see a future where ETFs act like a regulated parking spot for token holders.

Chad Steingraber has been vocal about in-kind mechanics, arguing that investors could swap XRP for matching ETF shares and treat the funds as a safer place to hold value until they need to move tokens again.

Those comments have helped popularize the idea that ETFs could be used in a bank-like way.

What Taxes Might Look Like

Reports and investor guides show that ETF structure matters for taxes. ETFs often use in-kind creation and redemption to avoid routine capital gains distributions at the fund level, which helps make ETFs tax-efficient in many cases.

But tax consequences for token holders depend on how transactions are carried out and on the product’s legal structure.

Under current US rules, transfers that change the form of an asset can create taxable events for the person handing over the asset, and fund-level distributions can still produce tax bills for investors.

According to Chad Steingraber, the in-kind structure gives XRP holders a regulated place to park their tokens when they want safety and oversight.

Investors, Steingraber believes, may favor ETFs once the Clarity Act clarifies rules. The appeal is not the technical steps but the confidence of holding XRP in a regulated, organized product. For him, ETFs offer a safer way to manage tokens while still keeping access to them when needed.

Featured image from Unsplash, chart from TradingView