XRP ETF Approval Nears as SEC Reviews Major Crypto Fund

The possibility of an XRP ETF approval is gaining traction as the U.S. Securities and Exchange Commission (SEC) formally acknowledged an updated proposal by Grayscale to transform its Digital Large Cap Fund into a cryptocurrency exchange-traded fund (ETF). This fund, which includes XRP along with Solana (SOL) and Cardano (ADA), could mark a critical milestone in broadening investor access to top-tier altcoins.

Originally submitted in October of last year, Grayscale’s revised filing aims to convert its multi-asset cryptocurrency fund into an ETF, mirroring the investment products already launched for Bitcoin and Ethereum. This week is particularly pivotal, as the SEC must deliver a definitive decision on the updated application by July 2, either approving or denying it without delays.

The ETF in question stands out because it would be the first spot-based crypto ETF in the United States that includes alternative digital assets like XRP. A greenlight from the SEC would set a new precedent, offering investors regulated exposure to multiple large-cap cryptocurrencies beyond just Bitcoin or Ethereum. The approval would also lend institutional credibility to assets such as XRP, which has faced regulatory headwinds in the past.

Nate Geraci, a prominent ETF analyst, emphasized that this deadline is critical. According to him, this moment represents a rare window where the SEC is forced to take a decisive stance. Previous commentary from Bloomberg analysts reinforces this optimism, as they’ve placed the likelihood of approval at 95%—a confidence level that signals overwhelming market expectations for a positive ruling.

As investors anxiously await the SEC’s final call, the industry is drawing parallels to past events that signaled growing institutional acceptance of cryptocurrency. Notably, a key legal victory by Grayscale against the SEC led to the eventual approval of spot Bitcoin ETFs earlier this year. That precedent played a cascading role in paving the way for similar products, including spot Ethereum ETFs, which were approved not long after.

The XRP ETF, if authorized, could spark a broader wave of altcoin-based ETFs entering the market. Firms like Franklin Templeton, Bitwise, and 21Shares have all submitted proposals for single-asset ETFs focused on specific cryptocurrencies. However, major players like Fidelity and BlackRock have yet to join the race, signaling there’s still ample room for growth and competition in this space.

This momentum reflects a broader trend of institutional influx into digital assets. Unlike traditional cryptocurrencies that often spark retail interest through hype cycles, ETF products rooted in regulatory compliance carve out a viable path for long-term, risk-conscious investors. For XRP in particular, this represents a redemption arc of sorts—turning the page from its years-old legal battles and moving toward mainstream financial integration.

For now, the crypto community and financial markets are sharply focused on what the SEC’s next move will be. Should the agency give the green light by July 2, it won’t just validate Grayscale’s strategy—it will signal a meaningful shift in how alternative cryptocurrencies like XRP are recognized and integrated into regulated financial markets.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, the SEC’s impending decision could serve as a landmark moment for XRP and similar digital assets. With institutional credibility on the line, the approval of this ETF would mark a significant leap in the evolution of crypto investing.