XRP News Today: SEC Poised to Approve Grayscale Digital Large Cap Fund This Week

The U.S. Securities and Exchange Commission (SEC) is poised to make a pivotal decision on the Grayscale Digital Large Cap Fund (GDLC) this week, with experts predicting a high likelihood of approval. This decision could potentially clear the path for the first U.S. spot ETFs tracking major altcoins such as XRP, Solana (SOL), and Cardano (ADA).

Nate Geraci, president of the ETF Store, has expressed optimism about the approval, citing the SEC's recent engagement with the filing of an amended S-3 form. This regulatory interaction suggests that the SEC is seriously considering the proposal. Geraci points out a regulatory loophole that allows up to 15% of ETF holdings to be private assets, with some issuers finding creative ways to exceed this limit. Given that XRP, SOL, and ADA make up less than 10% of the GDLC portfolio, excluding them would be inconsistent with the 1933 Securities Act. Geraci believes that the GDLC could serve as a low-risk "test run" for the SEC before it gradually expands into other assets.

This anticipated clearance comes amidst a series of pro-crypto developments in the United States. The embrace of the industry by President Donald Trump has encouraged asset managers to file a flurry of altcoin ETF applications since early 2025. Firms like WisdomTree, 21Shares, and VanEck have submitted standalone applications for XRP, SOL, and ADA. Grayscale itself has filed separate proposals to convert its XRP and SOL trusts into spot ETFs, a move that was previously considered unlikely to gain approval. In February, the SEC acknowledged Grayscale's Solana ETF proposal, marking a notable development in the regulatory landscape.

Institutional demand for such products is surging, with spot BTC ETFs attracting significant inflows. This trend indicates a growing interest in crypto investments, which could further drive the approval of altcoin ETFs. The approval of spot ETFs for XRP, Litecoin (LTC), and Solana (SOL) is highly anticipated this year, with experts raising the probability to 95%. This optimism is driven by the SEC's increased engagement with ETF issuers and the potential for a wave of new ETFs in the second half of 2025. The financial watchdog is expected to make a decision on the three proposals in October.

The analysts, who have been closely monitoring the developments, have also given a 90% probability for spot ETFs tied to Dogecoin (DOGE), Cardano (ADA), Polkadot (DOT), Hedera (HBAR), and Avalanche (AVAX). However, filings from Canary Capital for Sui (SUI) and Tron (TRX) received lower estimates, at 60% and 50% respectively. The uncertainty surrounding SUI and TRX stems from the lack of CFTC-regulated futures products and the unclear classification of these assets by the SEC.

The increased optimism from analysts follows signs of more engagement from the SEC. A report revealed that the regulator had asked ETF issuers to submit updated S-1 registration forms and promised to respond within 30 days. It also asked applicants to explain how they plan to handle staking and in-kind redemptions. This engagement suggests that the SEC is taking steps to address the concerns that have previously delayed the approval of crypto ETFs.

The launch of the first U.S.-based staked crypto ETF, the REX Osprey SOL Staking ETF, marks a significant milestone in the crypto investing landscape. This ETF will allow investors to earn yield from staking Solana, although it will invest at least 40% of its assets in other crypto exchange-traded products to meet diversification rules. Despite this progress, the SEC has yet to move forward with Ethereum staking ETFs, recently postponing its decision on the Bitwise Ether staking investment product and delaying approval for the Osprey Bitcoin Trust.

The approval of spot ETFs for XRP, LTC, and SOL could have significant implications for the broader crypto market. According to expert predictions, the approval of these ETFs could drive adoption and potentially lead to double-digit price increases for XRP. The imminent end to the SEC lawsuit against Ripple, the company behind XRP, is also seen as a catalyst for increased adoption and price appreciation.

The approval of these ETFs could also benefit other altcoins, as institutional demand for crypto continues to rise. The launch of Bitcoin and Ethereum ETFs has already seen major inflows, and the addition of Solana and other altcoins to the ETF landscape could further diversify the crypto market and attract more institutional investors. The approval of these ETFs could also pave the way for the approval of ETFs tracking broad crypto indexes, which could provide investors with even more options for gaining exposure to the crypto market.