Grayscale has officially filed an application with the SEC to convert its Digital Large Cap Fund into a publicly traded ETF. The inclusion of XRP in this ETF marks a significant milestone for the token in its ongoing journey toward broader institutional acceptance.
A Major Step Toward Crypto ETF Expansion
Grayscale is well known for its Grayscale Bitcoin Trust, which recently became the first spot Bitcoin ETF in the U.S. The move to launch the Digital Large Cap Fund ETF signifies a broader push to offer diversified crypto investment products in a regulated and publicly accessible manner. The fund is designed to track a basket of top cryptocurrencies, including Bitcoin, Ethereum, Solana, and XRP.
XRP’s Inclusion: A Pivotal Moment
The decision to include XRP in the Digital Large Cap Fund ETF is particularly significant given the token’s regulatory history with the SEC. For years, Ripple Labs and XRP have been entangled in a legal battle over whether XRP should be classified as a security. However, the inclusion of XRP in a regulated ETF product suggests growing institutional confidence in XRP’s legitimacy and future potential. This inclusion could open opportunities for institutional investors, increase liquidity and price stability, and recognize XRP’s utility in cross-border payments.
Regulatory Considerations and Market Impact
Grayscale’s filing comes amid a shifting regulatory landscape for crypto ETFs. Following the approval of spot Bitcoin ETFs, there is increasing speculation about when the SEC might greenlight spot Ethereum and other multi-asset crypto ETFs. If the Digital Large Cap Fund ETF is approved, it could indicate a regulatory openness to diversified crypto investment products. Market analysts suggest the launch of such an ETF could bring new capital into XRP and other included assets, strengthening their market positions and further legitimizing digital assets in traditional finance.
Grayscale’s filing for the Digital Large Cap Fund ETF with XRP signals a significant step in expanding institutional access to cryptocurrencies. If approved, this ETF could expand investor access, drive market growth, and further cement XRP’s role in the evolving crypto economy.
