Grayscale ETF Approval Makes a Spot XRP ETF Seem Inevitable

• The SEC’s recent approval of Grayscale’s multi-token crypto ETF, which includes XRP, sets a strong precedent for standalone XRP spot ETFs.
• At least ten XRP spot ETF applications are currently under SEC review.
• Ripple-SEC lawsuit resolution and regulatory easing increase the likelihood of XRP spot ETFs.

A recent breakthrough by Grayscale has significantly boosted expectations that XRP spot ETFs will soon receive the green light in the United States. 

With the SEC now approving a product that includes direct XRP exposure, the case for standalone XRP ETFs just got stronger.

Grayscale’s Multi-Asset Spot ETF Ushers in a New Era

On July 1, the U.S. SEC officially approved Grayscale’s request to convert its Digital Large Cap Fund (GDLC) into a spot ETF. This fund includes five major digital assets: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

This marks a pivotal moment for XRP and other altcoins. Unlike prior ETF approvals focused on derivatives or leveraged products, GDLC represents a direct investment vehicle, giving XRP formal entry into the regulated spot ETF ecosystem.

While the SEC has previously allowed XRP-linked futures ETFs like Teucrium’s 2X and Volatility Shares’ 1X, these instruments don’t hold actual XRP. Grayscale’s newly approved fund, however, does. The move only provides indirect legitimacy and also sets the stage for XRP-focused ETFs to advance.

Related: XRP ETF Approval Odds Hit 90% as Teucrium XRP Futures ETF (XXRP) Hits $122M in AUM

XRP’s Institutional Leap 

With its inclusion in GDLC, XRP now shares the stage with Bitcoin and Ethereum in a regulated investment product accessible to institutional investors. This development is particularly significant given XRP’s past regulatory struggles, especially the now-settled lawsuit between Ripple and the SEC.

As of its launch on NYSE Arca, GDLC manages approximately $754.74 million in assets. XRP comprises 4.8% of the fund, with Bitcoin taking up the lion’s share at 80.4%, followed by Ethereum at 11.15%. 

Pressure Builds for Standalone XRP ETFs

There are currently around ten pending XRP spot ETF applications under SEC review. Major asset managers like Bitwise, Grayscale, and Franklin Templeton are among the applicants. With XRP already present in a spot ETF approved by the SEC, rejecting these standalone proposals could become legally and politically challenging.

Bitwise’s Crypto Index Fund (BITW), which holds ten cryptocurrencies including XRP, is also seeking conversion into a spot ETF. If approved, it would further normalize XRP’s presence in regulated investment products.

Related: Bitwise Multi-Coin Fund’s ETP Proposal Brings XRP Closer to Mainstream

Timeline and Outlook

The SEC has until October 2025 to make final decisions on the pending XRP ETF filings. Given the precedent set by Grayscale’s GDLC, industry observers believe that full approval is now a question of “when,” not “if.”