In a landmark development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has approved Grayscale’s Digital Large Cap Fund conversion into an exchange-traded fund (ETF), now officially trading on NYSE Arca. This decision marks a pivotal moment for XRP, as it becomes one of the key digital assets included in the ETF—signaling growing regulatory acceptance and opening new pathways for institutional investment.
For years, the legal status of XRP has been clouded by the high-profile SEC vs. Ripple lawsuit. Now, with XRP’s inclusion in a regulated, publicly traded ETF, market sentiment is shifting. This approval not only legitimizes XRP as a viable asset class but also reignites hopes for future standalone XRP spot ETFs in the United States.
XRP Gains Regulatory Momentum With SEC-Approved ETF
The newly approved Grayscale Digital Large Cap ETF offers U.S. investors regulated exposure to top cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and—critically—XRP. While XRP holds a 4.8% weighting in the fund, compared to 80% for BTC and 11% for ETH, its presence is symbolically powerful.
👉 Discover how regulated crypto access is transforming investor strategies in 2025.
This marks the first time American retail and institutional investors can gain indirect exposure to XRP through a fully compliant financial product. Prior to this, many U.S. investors faced barriers due to regulatory uncertainty surrounding XRP’s classification.
ETF analyst James Seyffart emphasized the broader implications: “This is more than just a fund launch—it’s a signal that altcoins are gaining legitimacy in traditional finance. The inclusion of XRP suggests the SEC is softening its stance, which could pave the way for dedicated XRP spot ETF filings.”
The approval follows years of litigation between Ripple Labs and the SEC, which argued whether XRP should be classified as a security. A federal judge previously ruled that XRP is not inherently a security when sold to retail investors, creating a foundation for this latest regulatory shift.
What This Means for Ripple and the XRP Ecosystem
Grayscale Investments Sponsors LLC, a subsidiary of Digital Currency Group, manages the ETF, with Coinbase Custody Trust Company serving as custodian. Structured as a Cayman Islands LLC, the fund tracks the CoinDesk 20 Index, which includes the largest digital assets by market cap.
Ripple has long maintained that XRP is a decentralized, utility-driven cryptocurrency used primarily for cross-border payments and liquidity solutions. The ETF’s approval strengthens that narrative by demonstrating that regulators are increasingly recognizing XRP’s role beyond speculative trading.
With this milestone, financial institutions that previously avoided XRP due to compliance concerns may now consider allocating capital through regulated vehicles. This shift could significantly expand XRP’s investor base and improve market depth.
Moreover, investors no longer need to rely solely on crypto exchanges or self-custody wallets to gain exposure. The ETF provides a familiar, secure entry point—especially appealing to conservative or novice investors wary of digital asset volatility and custody risks.
Global Precedent: International XRP ETFs Pave the Way
The U.S. approval comes after several international markets launched spot XRP ETFs. In Brazil, Hashdex’s XRP ETF has been trading on the B3 exchange since early 2024, marking the world’s first spot XRP ETF. Similarly, Canada’s Purpose Investments introduced its XRP ETF on the Toronto Stock Exchange, offering Canadian investors direct access.
These global launches created pressure on U.S. regulators to keep pace in the evolving digital asset landscape. The Grayscale decision indicates that the U.S. is beginning to close that gap—though it still lags behind in approving single-asset spot ETFs for most altcoins.
Analysts believe this multi-asset ETF approval could accelerate reviews of the 17 pending XRP ETF applications from firms like Franklin Templeton and Hashdex. If the SEC continues down this path, dedicated XRP spot ETFs could follow within the next 12–18 months.
ETF expert Nate Geraci noted, “This could be the start of a floodgate moment for altcoin ETFs. Once regulators accept an asset in a diversified fund, standalone products become much easier to justify.”
XRP Price Outlook: Is a Rally on the Horizon?
At the time of writing, XRP is trading around $2.19, slightly down from recent highs but still reflecting strong market resilience. Despite short-term fluctuations, traders are optimistic about medium- to long-term price momentum driven by growing institutional interest.
Key resistance levels remain near $2.34 and $2.65. A sustained breakout above these zones could be triggered by further ETF developments, increased on-chain activity, or broader bullish trends in the crypto market—particularly if Bitcoin continues its upward trajectory.
👉 Stay ahead of price movements with tools designed for smart crypto investing.
Fundamental improvements are also underway within the XRP Ledger ecosystem. Recent advancements include the rollout of the XRPL EVM Sidechain, which enables Ethereum-compatible smart contracts on the network—expanding use cases beyond payments into DeFi and tokenization.
Additionally, rising open interest and whale accumulation patterns suggest growing confidence among large holders. When combined with improving macroeconomic conditions and expectations of further regulatory clarity, these factors create a favorable environment for potential price appreciation.
While some analysts project XRP could reach $3.00 or higher in a bullish scenario, others remain cautious until additional ETF approvals materialize. Still, most agree that the risk-reward profile has shifted positively compared to previous years.
Frequently Asked Questions (FAQ)
Q: Does this mean XRP is no longer considered a security by the SEC?
A: While the SEC hasn’t issued a formal declaration, its approval of an ETF containing XRP strongly implies regulatory acceptance of XRP as a non-security in certain contexts—particularly for retail trading and investment funds.
Q: Can I buy XRP directly through this ETF?
A: No—you cannot redeem shares for actual XRP tokens. However, you gain financial exposure to XRP’s price performance through ETF ownership, similar to how stock ETFs work.
Q: How does this affect future XRP spot ETF applications?
A: The approval sets a strong precedent. If regulators allow XRP in a multi-asset ETF, it becomes harder to justify blocking single-asset versions, increasing the likelihood of future approvals.
Q: Is this a spot or futures-based ETF?
A: This is a spot ETF, meaning it holds actual digital assets rather than derivatives. This enhances transparency and aligns with investor demand for direct exposure.
Q: What percentage of the Grayscale ETF is allocated to XRP?
A: Approximately 4.8% of the fund is allocated to XRP, making it the fourth-largest holding after Bitcoin, Ethereum, and Solana.
Q: Could other altcoins follow XRP into ETFs?
A: Yes—analysts believe assets like Solana, Cardano, and Polkadot may be next in line for similar treatment, especially if market demand and regulatory clarity continue to grow.
A New Chapter for XRP and Institutional Crypto Adoption
The SEC’s approval of Grayscale’s Digital Large Cap Fund represents more than just a product launch—it’s a turning point in the evolution of digital assets within traditional finance. For Ripple and the wider XRP community, it validates years of advocacy for fair treatment and regulatory clarity.
As more financial institutions embrace crypto through regulated products, assets like XRP are transitioning from speculative instruments to legitimate components of diversified portfolios. With expanding use cases on the XRP Ledger and growing global adoption—from mortgage settlements to stablecoin issuance—the ecosystem continues to mature.
While price movements will always reflect market dynamics, the structural foundations for long-term growth are now stronger than ever. Whether through ETFs, real-world applications, or cross-border innovation, XRP is positioning itself as a cornerstone of the next-generation financial system.
👉 Explore regulated crypto opportunities and prepare for what’s next in digital finance.
Core Keywords:
XRP ETF, SEC approval, Grayscale ETF, XRP price prediction, institutional adoption, Ripple vs SEC, crypto regulation, spot ETF