XRP Poised to Benefit as Altcoin ETFs Gain Momentum

XRP could soon receive a major boost as expectations rise over the approval of altcoin exchange-traded funds (ETFs) in the United States. Industry experts predict that regulatory shifts are paving the way for spot ETFs holding major altcoins, and XRP is emerging as a top contender to benefit from this development.

This week, the U.S. Securities and Exchange Commission (SEC) is anticipated to make a pivotal ruling on the proposed conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a listed ETF. According to Nate Geraci, president of the ETF Store, the odds of the SEC granting approval are significantly high. This decision could serve as a breakthrough for ETFs centered on altcoins such as XRP, Solana (SOL), and Cardano (ADA).

The Doorway to Altcoin ETF Integration

The GDLC is a diversified crypto investment fund that presently includes Bitcoin (BTC), Ethereum (ETH), XRP, SOL, and ADA. Transforming the fund into an ETF would mark the first time the SEC greenlights a U.S.-based ETF holding these altcoins under one umbrella. Geraci recently shared on X that the SEC’s progression on this matter—evidenced by the recent amendment of a critical S-3 filing—demonstrates growing receptiveness.

Geraci pointed to a regulatory nuance permitting ETFs to allocate up to 15% of their holdings to non-public assets. Some fund managers have allegedly applied innovative structuring techniques to stretch this limit. He emphasized that XRP, SOL, and ADA make up less than 10% of the GDLC, making their exclusion from the ETF inconsistent with the Securities Act of 1933. As a result, allowing this fund to proceed would not only uphold legal standards but also provide a practical testing ground for the SEC before introducing more targeted altcoin ETF products.

“Think *high likelihood* this is approved,” Geraci stated. “Would then be followed later by approval for individual spot ETFs on xrp, sol, ada, etc.”

A Changing Regulatory Landscape

The positive sentiment around altcoin ETFs is fueled by a broader regulatory thaw in the United States. The recent shift in political support—exemplified by former President Donald Trump’s open endorsement of the cryptocurrency sector—has emboldened major financial institutions to increase their involvement in digital assets.

Since early 2025, several investment firms, including VanEck, WisdomTree, and 21Shares, have filed for spot ETFs specifically focusing on XRP, SOL, and ADA. These filings would have been considered highly speculative just months ago, but the climate appears to be changing rapidly. In particular, Grayscale has submitted standalone applications to convert its XRP and SOL trusts into spot ETFs, signaling long-term confidence in regulatory acceptance.

Back in February, the SEC formally addressed Grayscale’s Solana ETF proposal—a small move, but one that analysts view as a meaningful step toward broader cryptocurrency ETF adoption. Bloomberg’s Eric Balchunas described the development as a “baby step, but a notable development,” showing that even modest regulatory engagement can indicate future acceptance.

Capital flows also reflect surging institutional demand. A major player tied to Trump Media recently filed for a spot Bitcoin and Ethereum ETF, with Crypto.com tapped for custody services. This solidifies expectations that institutions are not only expressing interest but are ready to commit capital.

Adding to the momentum, spot Bitcoin ETFs witnessed over $2.2 billion in inflows just last week, marking seven consecutive weeks of net positive investment. Total cumulative inflows are now approaching $50 billion, according to SoSoValue. These figures underscore significant appetite among investors for cryptocurrency fund options, potentially laying the groundwork for altcoin-focused products like those involving XRP.

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

With regulatory attitudes shifting and market demand expanding, XRP appears well-positioned to benefit from upcoming ETF approvals. As the SEC moves closer to a decision on GDLC, the crypto community is watching closely—and for XRP supporters, the future looks promising.