XRP ETF filing raises questions over Ripple escrow

Cryptex Finance filed an amended registration statement on Aug. 24 for its proposed Digital Market Cap ETF, including XRP at a 4.88% fund weighting. Summary Cryptex’s amended ETF filing assigns XRP a 4.88% fund weighting and discusses possible escrow releases. The disputed language comes from Cryptex, not an SEC finding or confirmed Ripple announcement directly. Existing XRP escrows cannot release tokens before their programmed ledger-based expiration conditions are satisfied technically. Ripple could distribute more monthly releases instead of re-escrowing them, but has confirmed nothing publicly. The CLARITY Act remains pending in Senate, so passage and resulting market changes remain uncertain. The document also claims Ripple could release additional XRP from escrow if Congress passes the CLARITY Act. The wording attracted attention because Ripple has not publicly confirmed such a plan. The document is a disclosure prepared by Cryptex and filed with the U.S. Securities and Exchange Commission. It does not represent an SEC finding or an announcement from Ripple. You might also like: XRP price forms bullish pennant after 51% rally, is $2 next? Cryptex included the XRP escrow claim in its filing The amended S-1 filing states that Ripple historically returns 60% to 80% of its monthly XRP releases to escrow. It then makes a broader claim about future distributions. “The company has indicated that, if regulatory clarity is established … it may release additional XRP from escrow to support on-ledger liquidity in stablecoin and FX pairs.” The statement does not identify its source. It also does not provide a link, date or named Ripple representative. Attorney Bill Morgan questioned where Cryptex obtained the information, saying he did not recall Ripple announcing that intention. A registration statement filed with the SEC yesterday for Cryptex Digital Market Cap ETF provides a fund weight of 4.88% for $XRP I found this statement in the document interesting👇and had Grok reformat it to attach it. It cites that Ripple has indicated that if regulatory… pic.twitter.com/wU6Q39tldz — bill morgan (@Belisarius2020) August 26, 2026 Cryptex’s proposed fund would trade under the ticker BAGZ and track a diversified digital-asset index. XRP represented 4.36% of the underlying index and 4.88% of the proposed fund after Cryptex applied its eligibility screens as of Aug. 17. Ripple cannot unlock existing XRP escrow early The phrase “release additional XRP from escrow” could suggest that Ripple can withdraw locked tokens ahead of schedule. However, the XRP Ledger’s rules do not permit an early release from a time-based escrow. According to the official XRP Ledger documentation, an EscrowFinish transaction fails when its programmed FinishAfter time has not passed. That restriction is enforced through the ledger rather than Ripple’s internal policies. Ripple originally created 55 escrow contracts containing 1 billion XRP each. One scheduled batch becomes available monthly.