XRP ETF Gains Momentum After SEC OKs Grayscale Fund

The recent approval of Grayscale’s multi-crypto exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) is sparking major optimism about the potential launch of an XRP ETF. This latest development is a significant move toward mainstream investment products centered on digital assets like XRP and could set the stage for more altcoin-specific ETFs entering regulated markets.

Grayscale’s Digital Large Cap Fund (GDLC) will now transition into a publicly traded spot ETF. This transformation will allow investors to gain exposure to a diversified mix of top cryptocurrencies, including XRP, Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA), all within one regulated structure.

Positive Outlook for Altcoin-Based ETFs

The GDLC fund is aligned with the CoinDesk 5 Index, reflecting the performance of the five most prominent and liquid digital currencies. XRP’s inclusion in this mix is a promising sign, showing that regulators are increasingly open to broader crypto market participation through ETFs.

Earlier this week, investment strategist Nate Geraci shared his belief that the SEC was likely to approve the GDLC conversion, attributing the increased likelihood to a more pro-crypto stance at the regulatory body. Changes in U.S. political leadership, including outward support for crypto from prominent figures, are contributing to this favorable shift in sentiment.

This sentiment was validated when the SEC confirmed the fund’s approval in a formal filing. The market reaction was immediate. Investors viewed the move as a potential catalyst for the SEC to clear the path for altcoin-specific ETFs. XRP’s presence in Grayscale’s fund offers a clear test case for regulators assessing the viability of individual crypto ETFs beyond Bitcoin and Ethereum.

According to Geraci, GDLC may serve as a trial platform for the SEC to evaluate the broader altcoin ETF market. He suggested that XRP, SOL, and ADA are strong candidates for future spot ETFs, signaling increased confidence in the asset class.

“See where this is all heading? Individual spot XRP, SOL, ADA, etc, ETFs up next,” wrote Geraci.

Similar confidence was expressed by Bloomberg analysts James Seyffart and Eric Balchunas, who updated their crypto ETF odds to reflect a 95% chance that the SEC could approve spot ETFs for Litecoin (LTC), Solana, and XRP this year.

Even though the SEC has expanded its review process to get public input on several crypto ETF filings — especially those linked with XRP and Dogecoin (DOGE) — it hasn’t slowed investor enthusiasm. Meanwhile, Canadian regulators have advanced faster in this space by approving two dedicated spot ETFs for XRP: 3iQ’s XRPQ and Purpose Investment’s XRPP.

Launch of GDLC ETF Just Ahead

With this approval, Grayscale adds another product to its growing ETF lineup, joining its Bitcoin Trust ETF (GBTC), which received the SEC’s green light in January 2025. This new ETF structure offers regulated exposure to a basket of top-performing cryptocurrencies, consolidating investor interest into a single, government-approved vehicle.

The fund will undergo regular rebalancing to ensure accurate representation of the market’s leading digital assets. Additionally, its open-ended format allows investor-friendly features such as daily share creation and redemption, helping to reduce the inconsistencies in pricing that often plagued the previously closed-end GDLC product.

Grayscale also emphasized that if any of the cryptocurrencies in the fund face enforcement actions, they could be removed during the routine rebalancing process. This clause provides a dynamic structure to adapt to regulatory developments while maintaining investor protections.

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

Trading for the revamped ETF is anticipated to begin soon, once final preparations and coordination with the NYSE Arca exchange are complete. As momentum builds for digital assets in regulated markets, XRP could be one of the next major cryptocurrencies to see its very own spot ETF, marking another milestone toward mass adoption.