Grayscale Investments has submitted an amendment to the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). The filing, made on June 26, 2025, aims to list the ETF on NYSE Arca and includes XRP among its core holdings alongside Bitcoin, Ethereum, Solana, and Cardano. This move could provide U.S. investors with regulated exposure to a diversified basket of major cryptocurrencies.
The SEC is required to make a decision on the application by July 2, 2025. This development follows Grayscale’s successful legal battle with the SEC in 2023, which led to the conversion of its Bitcoin Trust into a spot ETF. The current GDLC fund holds approximately $760 million in assets, with Bitcoin comprising 80.8%, Ethereum 11.07%, XRP 4.63%, Solana 2.75%, and Cardano 0.75%.
Market Response and XRP Performance
XRP experienced significant positive momentum following the announcement, outperforming the broader cryptocurrency market. On-chain data indicated a 637% surge in transaction volume within 24 hours, reflecting heightened investor interest. The price of XRP stabilized around $2.18, with technical analysts suggesting potential upward targets of $2.92 or even $3.63 if bullish conditions persist.
In contrast, Bitcoin saw a slight decline, ending a three-day gaining streak and trading near $107,729. Despite this dip, Bitcoin spot ETFs recorded strong demand, with net inflows of $501.2 million on June 27, 2025. Bitcoin remains the dominant cryptocurrency, accounting for 64.72% of the total crypto market capitalization of $3.27 trillion.
Regulatory Context and Strategic Implications
The Grayscale filing arrives amid improving regulatory clarity for XRP. Ripple Labs recently settled a long-standing legal dispute with the SEC for $50 million, removing a significant overhang for the asset. The inclusion of XRP in a potential spot ETF is viewed as a major step toward institutional legitimacy and broader adoption.
If approved, the GDLC ETF would be the first U.S. spot ETF to include altcoins like XRP, providing both institutional and retail investors with easier access to a diversified crypto portfolio. The fund’s structure, which limits altcoin exposure to less than 10% of total assets, may alleviate regulatory concerns about volatility and liquidity.
Broader Market Dynamics
Grayscale’s initiative reflects growing institutional interest in cryptocurrency diversification. The company’s Bitcoin ETF, approved in January 2024, saw substantial inflows and set a precedent for future products. A similar success with the GDLC conversion could further validate altcoins and catalyze new capital into the ecosystem.
However, risks remain. SEC pushback or lower-than-expected investor demand could create selling pressure on XRP and other included assets. Additionally, the approval process for single-asset ETFs—such as those focused solely on XRP or Solana—is likely to involve a longer timeline and stricter scrutiny.
Frequently Asked Questions
What cryptocurrencies are included in Grayscale’s ETF filing?
The filing includes Bitcoin, Ethereum, XRP, Solana, and Cardano. These assets represent the core holdings of the Digital Large Cap Fund (GDLC), which Grayscale seeks to convert into a spot ETF.
When will the SEC decide on the Grayscale ETF application?
The SEC is required to make a decision by July 2, 2025. This deadline is part of the statutory timetable governing such filings.
How has XRP performed following the announcement?
XRP recorded a 637% increase in on-chain transaction volume and stabilized around $2.18. Technical analysis suggests potential price targets of $2.92 or higher if market optimism continues.
What are the risks associated with this ETF?
Key risks include regulatory rejection by the SEC, lack of investor interest, or increased market volatility. These factors could negatively impact the price of XRP and other included cryptocurrencies.
How does this ETF differ from a Bitcoin-only ETF?
This ETF provides exposure to multiple cryptocurrencies, including major altcoins like XRP and Solana. It offers diversified access to the crypto market, whereas Bitcoin-only ETFs focus solely on Bitcoin.
Why is Grayscale’s filing significant for the crypto market?
It represents a major step toward regulatory acceptance and institutional adoption of altcoins. Approval could enhance liquidity, legitimacy, and accessibility for cryptocurrencies beyond Bitcoin. For those looking to track real-time market updates, this development is particularly relevant.
Conclusion
Grayscale’s proposal to include XRP in a spot ETF marks a pivotal moment for the cryptocurrency market. It combines regulatory progress, institutional validation, and investor enthusiasm—all factors that could drive significant growth for XRP and other altcoins. While challenges remain, the potential for approved diversified crypto ETFs represents a new chapter in digital asset investing. Investors seeking to explore advanced market strategies should monitor SEC developments closely as the decision deadline approaches.