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Spot Ripple (XRP) ETF Coming Up Next? SEC Approves Grayscale’s Multi-Crypto ETF

The U.S. Securities and Exchange Commission (SEC) has approved Grayscale Investments’ application to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF).

The move will see GDLC become a publicly traded ETF offering exposure to several crypto assets within a single structure.

Optimism for Altcoin ETFs

The GDLC fund currently includes a mix of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). It is modeled on the CoinDesk 5 Index, which measures the performance of the five largest and most liquid digital assets.

Earlier in the week, investment advisor Nate Geraci predicted a “high likelihood” of GDLC getting the regulatory thumbs up following a pro-crypto turnaround at the SEC and U.S. President Donald Trump’s open embrace of the industry.

The green light, confirmed in a Monday filing, has seen optimism grow among investors who see the move as a positive signal for potential future approval of altcoin-specific ETFs. This is due to the inclusion of these assets in GDLC’s structure.

Geraci noted that the fund could be seen as a low-risk “test run” for the SEC before it gradually starts considering other crypto assets.

“See where this is all heading? Individual spot XRP, SOL, ADA, etc, ETFs up next,” wrote the expert.

His optimism was shared by Bloomberg analysts James Seyffart and Eric Balchunas, who recently released an update to their crypto ETF approval odds. The two said there is now a 95% probability that the SEC will approve spot ETFs for LTC, SOL, and XRP this year.

In May, the financial watchdog extended its review timeline for several crypto ETFs, including those tied to XRP and Dogecoin (DOGE), to obtain public feedback. However, Canadian financial authorities have been quicker off the mark, approving a couple of spot ETFs tracking XRP in June, 3iQ’s XRPQ, and Purpose Investment’s XRPP.

GDLC Trading to Start Soon

GDLC will join Grayscale’s existing lineup of converted products following the approval of the firm’s Bitcoin Trust ETF (GBTC) in January 2025. It introduces one of the first regulated products tracking several digital assets.

Subject to periodic rebalancing, the fund’s structure allows daily share creation and redemption, potentially reducing the premium and discount issues that affected GDLC as a closed-end product.

Grayscale has also said that any asset subject to enforcement action may be removed from the index during rebalancing.

Trading for the converted ETF is expected to begin shortly, pending final operational readiness and exchange coordination with NYSE Arca.

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