XRP News Update: Flare ETF Faces SEC Challenges as DeFi Momentum Grows

Teucrium Trading LLC has submitted an application to the U.S. Securities and Exchange Commission for a Flare Network ETF, as FXRP minting on the platform exceeded $120 million—an important achievement for the XRP-focused decentralized finance (DeFi) sector. This move, confirmed by Flare co-founder Hugo Phillion on X, highlights increasing institutional attention toward the platform and follows Teucrium’s earlier success with a leveraged

ETF, .

Flare Network has established itself as the largest EVM-compatible DeFi ecosystem centered on XRP, with total value locked (TVL) climbing by almost 38% in just over a month, according to Blockonomi. The FXRP token, which lets users back XRP to create ERC-20 tokens, has been a key driver of this expansion. On-chain statistics reveal that the initial 5 million FXRP minting cap was reached within hours of launch, and the following 15 million cap was also quickly filled, Blockonomi noted. The FAssets framework supporting FXRP allows for decentralized lending and liquidity, while infrastructure such as the Flare Time Series Oracle and Data Connector make it possible to bridge non-smart contract assets without trust, Blockonomi reported.

Teucrium’s ETF proposal comes amid growing momentum for XRP-based investment vehicles. Bitwise and Canary Funds have also revised their XRP ETF filings, with Canary’s product potentially debuting as soon as November 13, 2025, pending approval from the SEC and Nasdaq,

. Market observers suggest these offerings could replicate the achievements of and ETFs, which have drawn billions in managed assets, . For Flare, the ETF application demonstrates a strategic effort to bring XRP into the mainstream financial sector, capitalizing on its rising TVL and institutional engagement, Blockonomi stated.

Yet, there are hurdles ahead. The FLR token, which is native to Flare, has declined 38% to $0.016 over the last month, trailing behind the rapid adoption of FXRP, Blockonomi reported. Regulatory ambiguity also remains a concern. The SEC’s ongoing scrutiny of XRP-related products—including its 2020 lawsuit against Ripple Labs—continues to create uncertainty, even though recent court decisions have determined XRP is not a security in secondary markets, as Coinotag pointed out.

Flare Network’s core infrastructure, including its Data Connector and Oracle, has played a crucial role in enabling decentralized data streams and interoperability across chains, Blockonomi reported. These solutions help FXRP serve as a link between XRP investors and DeFi platforms, with SparkDEX recently restarting perpetual trading based on FXRP, according to Blockonomi. Industry analysts see the ETF application as an endorsement of Flare’s ecosystem, which now accounts for over 60% of FXRP activity in DeFi, Blockonomi noted.

As the SEC evaluates Teucrium’s submission, the wider cryptocurrency market remains unpredictable. XRP has hovered around $0.50, and some analysts believe that a positive ETF decision could attract institutional capital and challenge major resistance levels, Coinotag reported. Flare Network’s advancements reflect a larger movement: DeFi platforms are increasingly drawing institutional funds by providing yield opportunities that compete with traditional investments, Blockonomi observed.