XRP Gains Momentum as SEC Greenlights Crypto Index ETF

XRP is making waves in the investment world as the U.S. Securities and Exchange Commission (SEC) has officially approved the conversion of Grayscale’s Digital Large Cap Fund into an exchange-traded fund (ETF), which notably includes XRP among its key components.

This monumental decision by the SEC introduces the first-ever multi-digital asset index ETF in the United States, marking a major regulatory and market milestone. Announced in a filing dated July 1, the approval permits Grayscale to transition its crypto index fund, consisting of the five largest cryptocurrencies by market capitalization, into a publicly traded ETF on NYSE Arca.

The ETF’s portfolio composition reflects the current market capitalization hierarchy with Bitcoin (BTC) making up approximately 80% of the fund, followed by Ethereum (ETH) at 11%, XRP at 4.8%, Solana (SOL) at 2.8%, and Cardano (ADA) at 0.8%. This carefully structured asset mix provides diversified exposure to blue-chip cryptocurrencies, highlighting XRP’s integral role.

The newly approved structure will allow continuous trading on the exchange along with real-time creation and redemption of shares, enhancing liquidity and accessibility for institutional and retail investors alike.

Grayscale’s Grayscale Investments reports the product’s non-GAAP assets under management totaling around $775 million as of June 30. This transformation from an over-the-counter traded product (historically under the ticker GDLC since 2019) into an ETF represents a leap forward in mainstream crypto financial products.

The approval came with an amendment to NYSE Arca Rule 8.500-E, enabling the listing and trading of Trust Units issued by limited-liability companies with portfolio weightings tied to index-based methodologies. This rule change supports the operational flexibility needed for complex crypto baskets such as this one.

XRP, alongside Solana and Cardano, earned special attention as the SEC acknowledged their inclusion in the approved portfolio, signaling optimistic regulatory sentiment around these altcoins. The timing also coincides with speculation over the market’s anticipation of the first Solana spot ETF possibly launching this week in the U.S., further adding momentum to the broader ETF landscape.

The SEC noted that the exchange’s surveillance procedures and the ETF’s asset composition comply with Section 6(b)(5) of the Securities Exchange Act, intended to prevent fraudulent and manipulative acts. This reaffirms investor safeguards while setting a precedent for a new era of transparent crypto investment vehicles.

The decision also paves a promising path for future crypto-index ETF conversions. For instance, Bitwise has already filed a Form 19b-4 aiming to transform its $1.3 billion Bitwise 10 Crypto Index Fund (BITW) into a fully-fledged ETF. Hashdex is working to broaden its Nasdaq Crypto Index US ETF to encompass more assets, including XRP and Solana, before transitioning its trust into an ETF format. Meanwhile, Franklin Templeton has also filed to launch its own crypto index ETF, signaling expansive interest across the financial sector.

This ETF expansion brings a wave of credibility and infrastructure to the crypto market. For XRP and its issuer, Ripple, this recognition by one of the most closely scrutinized regulatory commissions confirms the asset’s growing institutional appeal. With XRP’s rising adoption and now inclusion in regulated financial products, it is poised to play a central role in the evolving landscape of cryptocurrency investment.

To dive deeper into the ETF transformation, visit the official Grayscale product page.

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

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• Grayscale Investments
• Bitwise
• Franklin Templeton
• official Grayscale product page
• first spot Solana ETF
• wave of approval
• include seven additional altcoins