In a notable advancement for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale’s application. Their objective is to convert the Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF). This move could allow XRP to be included in a multi-asset spot ETF in the United States, giving investors diverse exposure to leading cryptocurrencies.
Summary of Grayscale’s Digital Large Cap Fund (GDLC) featuring XRP.
Grayscale launched the GDLC on February 1, 2018. The fund seeks to offer exposure to a range of cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX). Bitcoin and Ethereum account for most of its holdings, at 76.26% and 17.20%, respectively. In contrast, SOL, XRP, and AVAX account for smaller shares at 4.38%, 1.59%, and 0.57%, respectively.
NYSE Arca has filed an application requesting a rule change to allow GDLC shares to be traded as an ETF. The SEC acknowledged the application under Section 19(b)(1) of the Securities Exchange Act of 1934. This acknowledgment starts a public feedback process that is part of the review.
Implications of ETF Approval for XRP
If approved, Grayscale’s GDLC fund would become the first multi-asset spot ETF for crypto in the U.S. This could establish a precedent in the rapidly evolving cryptocurrency landscape. Consequently, XRP could attract increased interest from institutional investors. Investors might be more inclined to invest in a diversified cryptocurrency ETF.
Furthermore, this approval may favorably influence pending applications for spot-based XRP ETFs. Firms like Canary Capitals and Bitwise are looking to launch dedicated XRP funds. However, it is important to note that the SEC has not yet approved these filings. This is likely due to ongoing regulatory challenges regarding XRP’s classification. The SEC continues its legal proceedings with Ripple Labs about the regulatory status of the digital asset, which remains under appeal.
A Step Towards Legitimization of XRP
Ripple CEO Brad Garlinghouse is confident about the SEC’s eventual approval of XRP-based spot ETFs. If Grayscale’s proposal is approved, it would validate digital asset ETFs and boost investor interest in XRP. This would further integrate cryptocurrency into traditional financial markets.
The SEC’s acknowledgment of Grayscale’s application marks the beginning of the regulatory review period. This move towards a multi-asset ETF signifies a broader push for the acceptance of digital assets in regulated environments.
As the cryptocurrency market evolves, the potential approval of Grayscale’s GDLC ETF could usher in a new era for digital assets. This change could pave the way for similar funds and expand opportunities for investors.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
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