XRP News Today: Grayscale's Digital Large Cap Fund Faces July 2025 SEC Deadline for ETF Conversion

Grayscale's Digital Large Cap Fund, which includes XRP among its holdings, is approaching a critical regulatory deadline. The 240-day SEC review period for the fund is set to conclude on July 2, 2025. This deadline has sparked renewed speculation about the potential conversion of the fund into an exchange-traded fund (ETF).

The Grayscale Digital Large Cap Fund (GDLC) is a diversified investment vehicle that focuses on top digital assets, excluding stablecoins and meme tokens. It aims to provide institutional and retail investors with exposure to leading crypto assets through a regulated product. The fund currently holds Bitcoin, Ethereum, Solana, XRP, and Avalanche. Grayscale has applied to convert this fund into an ETF, which, if approved, would make it one of the first diversified crypto ETFs. The inclusion of XRP in this fund is particularly noteworthy, as the community has been eagerly awaiting a spot XRP ETF for years.

The regulatory process involves a formal ETF application, followed by a 240-day period for the SEC to approve or deny the request. The SEC has been reviewing the application since 2021 or 2022, and the transition to a listed ETF is a key part of Grayscale's long-term strategy. The expiration of the 240-day clock on July 2 marks a significant milestone in this process. Multiple crypto ETF applications are currently pending with the SEC, and industry observers have speculated that the approval of one product could pave the way for others to follow swiftly.

The inclusion of XRP in the fund has generated considerable interest due to the token's complex history with the SEC. XRP was the subject of a lawsuit by the agency, but regulatory clarity has improved as the regulator is in settlement proceedings with Ripple. The July 2 deadline provides a clear timeline for the market to monitor. If the GDLC ETF receives approval, with XRP as part of its underlying assets, it would signify a substantial shift in how the asset is perceived from a compliance and investment perspective, further solidifying its regulatory clarity.