XRP News Today: SEC Approves Grayscale ETF Conversion, Paving Way for Altcoin ETFs

The crypto ecosystem has reached a significant milestone with the expedited approval by the SEC of the conversion of the Grayscale Digital Large Cap Fund (GDLC) into an ETF. This decision is not only a victory for Grayscale but also marks the entry of altcoins into the regulatory scope. In a context where the political climate is softening towards cryptos, this decision could pave the way for a new generation of ETFs focused on assets like XRP, Solana, or Cardano.

On July 1st, the United States Securities and Exchange Commission (SEC) validated, through an accelerated process, the conversion of the Grayscale Digital Large Cap Fund LLC into an exchange-traded fund (ETF). This change was formalized in a regulatory document, amendment SR-NYSEARCA-2024-87, which stated: “It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act, that the proposed rule change […] be approved on an accelerated basis.” The fund, previously accessible only via direct transaction for accredited investors, will now be publicly listed on NYSE Arca, making this product available to individual investors through traditional markets.

The Grayscale Digital Large Cap Fund features a notable composition, marking a turning point in crypto ETF structuring. It is distinguished by its multi-asset nature, with Bitcoin comprising nearly 80% of the portfolio, Ethereum approximately 11%, and Solana (SOL), Cardano (ADA), and XRP each representing individual weightings of less than 10%. This diversity of assets makes the GDLC a vehicle for moderate exposure to altcoins while maintaining a secure base on the two main cryptos. This hybrid positioning allows the fund to act as a test for regulators, who can observe the gradual integration of other cryptos into listed financial instruments without sliding into overly risky exposure. This configuration, unprecedented in the US market, constitutes a strategic regulatory precedent.

Beyond the approval itself, analyzing sector reactions indicates a possible broadening of the range of spot ETFs to other cryptos. Nate Geraci, president of The ETF Store, reacted on social network X on June 30, 2025. He stated that this GDLC approval “could then be followed by approval of individual ETFs for XRP, SOL, ADA, etc.” He added that this decision represents an opportunity for the SEC to have a “real-world test for other crypto assets encapsulated within an ETF format.” Furthermore, he highlights that “XRP, SOL, and ADA together represent less than 10% of GDLC’s assets,” a ratio he views as ideal for a gradual increase in exposure.

Such a shift in political atmosphere plays a non-negligible role. Since President Donald Trump’s inauguration in January, observers have noted a more favorable climate for the crypto industry within federal bodies. The SEC is currently examining a series of crypto ETF proposals specifically focusing on altcoins, notably for Solana (SOL) and Dogecoin (DOGE). The approval of the GDLC could therefore serve as a regulatory precedent, easing the transition to financial products focusing exclusively on these assets. This momentum could mark a turning point for cryptos beyond the BTC-ETH duo. If the SEC is satisfied with the performance of this mixed fund in public markets, it would then have a concrete argument to justify future approvals centered exclusively on altcoins. However, no decision is guaranteed in the short term, as SEC arbitrations are influenced by political, legal, and systemic considerations.