The United States Securities and Exchange Commission (SEC) has officially acknowledged the receipt of Grayscale’s filing to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF) with exposure to XRP. This marks a pivotal development in the ongoing evolution of cryptocurrency regulation and institutional adoption in the U.S. financial ecosystem.
While the acknowledgment does not guarantee approval, it signifies that the formal review process has begun—an essential milestone for any ETF application. The move has reignited discussions around the potential for a spot XRP ETF and what it could mean for market accessibility, investor demand, and regulatory clarity.
What Does the Grayscale XRP ETF Filing Mean?
Grayscale Investments, one of the most prominent digital asset managers, filed to convert its existing GDLC fund into a regulated ETF. The GDLC is a diversified digital asset fund that includes major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and Ripple’s XRP. Notably, BTC makes up approximately 77% of the fund’s assets under management (AUM), with XRP representing a smaller but strategically significant portion.
👉 Discover how leading financial platforms are preparing for next-gen crypto ETFs.
The SEC’s acknowledgment means the application is now under active review. However, no timeline has been provided for a final decision. As part of the standard process, the commission has opened the door for public commentary, inviting stakeholders—from investors to industry experts—to weigh in on the potential implications of approving such a product.
This development follows a broader trend of increasing institutional interest in crypto-based financial products, especially after the landmark approvals of spot Bitcoin and Ethereum ETFs earlier in 2025.
Could This Be a Turning Point for XRP Regulation?
The regulatory journey of XRP has been long and contentious. Ripple Labs, the company behind XRP, has been engaged in a high-profile legal battle with the SEC since 2020 over whether XRP qualifies as a security. In recent rulings, courts have found that XRP is not inherently a security when sold to retail investors, a partial victory that strengthened Ripple’s position.
Ripple CEO Brad Garlinghouse has publicly stated that an XRP ETF is “inevitable,” citing the precedent set by BTC and ETH ETFs. His confidence stems from growing recognition of blockchain technology within mainstream finance and shifting regulatory attitudes.
Eric Balchunas, senior ETF analyst at Bloomberg, suggests that bundling XRP within a diversified large-cap crypto ETF—rather than offering a standalone spot XRP ETF—might improve approval odds. The SEC may view a multi-asset structure as less risky, particularly given concerns about market manipulation and liquidity in single-asset crypto funds.
Other XRP ETF Applications on the Horizon
While Grayscale’s filing has taken center stage, it is not alone in seeking regulatory approval for XRP-related ETFs.
Bitwise Asset Management submitted its own application for a spot XRP ETF in early October. The firm went public to confirm the legitimacy of its filing, distinguishing it from a false report involving BlackRock that circulated in late 2023. Bitwise aims to offer direct exposure to XRP through a transparent and regulated vehicle.
Shortly after, Canary Capital filed its proposal for an XRP ETF designed specifically for institutional investors. Unlike some competitors, Canary’s strategy involves tracking XRP’s price via the CME CF Ripple Index—a regulated benchmark—while avoiding derivative instruments. This approach may appeal to regulators seeking price transparency and market integrity.
As of now, neither Bitwise nor Canary Capital has received official acknowledgment from the SEC. Their applications remain in preliminary stages, awaiting entry into the formal review pipeline.
Why Investor Demand Matters
Institutional and retail demand for diversified crypto exposure continues to grow. After the successful launch of spot Bitcoin ETFs—which have collectively attracted billions in inflows—investors are looking beyond BTC and ETH toward high-potential digital assets like XRP.
XRP is uniquely positioned due to its use case in cross-border payments and enterprise blockchain solutions. Financial institutions and payment providers have already integrated Ripple’s technology to streamline international transactions, reduce costs, and increase settlement speed.
A regulated ETF would allow traditional investors to gain exposure to XRP without navigating crypto exchanges or managing private keys—lowering barriers to entry and enhancing compliance.
👉 Explore secure ways to engage with emerging digital asset markets.
Core Keywords
- XRP ETF
- Grayscale XRP ETF
- SEC approval
- Cryptocurrency regulation
- Spot XRP ETF
- Ripple SEC case
- Bitcoin ETF precedent
- Institutional crypto adoption
Frequently Asked Questions
Q: Has the SEC approved an XRP ETF yet?
A: No, the SEC has not approved any XRP ETF as of now. It has only acknowledged Grayscale’s application, initiating the review process.
Q: Why is Grayscale’s filing different from others?
A: Grayscale seeks to convert an existing multi-asset fund (GDLC) into an ETF, rather than launching a single-asset spot XRP ETF. This diversified structure may be viewed more favorably by regulators.
Q: How long does the SEC typically take to approve an ETF?
A: Approval timelines vary widely. For example, Bitcoin ETFs took nearly a decade to gain approval despite repeated filings. The SEC often issues multiple extensions before making a final decision.
Q: Will an XRP ETF boost the price of XRP?
A: Historically, ETF approvals have led to increased investor interest and price momentum. While not guaranteed, a green light for an XRP ETF could drive demand and positively impact valuation.
Q: Can U.S. investors currently buy XRP?
A: Yes, XRP is available on several major crypto exchanges in the U.S., though availability was temporarily restricted during the height of the SEC lawsuit.
Q: What role does market liquidity play in ETF approval?
A: The SEC evaluates whether the underlying asset has sufficient liquidity and transparent pricing to prevent manipulation. This remains a key consideration for all spot crypto ETFs.
👉 Stay ahead of crypto market shifts with trusted financial innovation platforms.
Final Outlook
The acknowledgment of Grayscale’s XRP-linked ETF filing represents more than just procedural progress—it signals a potential shift in how regulators view digital assets with real-world utility. While challenges remain, particularly around classification and market structure, the momentum behind crypto ETFs continues to build.
With strong precedents set by Bitcoin and Ethereum ETFs, and growing institutional demand for diversified digital asset exposure, the path toward an approved XRP ETF appears increasingly plausible. Whether through Grayscale’s multi-asset model or future standalone filings, the financial world may soon see regulated access to one of crypto’s most widely used enterprise tokens.
As the SEC weighs its decision, all eyes will be on Washington—and on Wall Street—for signs of what comes next in the evolution of crypto finance.