US SEC Acknowledges Grayscale’s XRP ETF Filing

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The United States Securities and Exchange Commission (SEC) has officially acknowledged the receipt of Grayscale’s application to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF) with exposure to XRP. This development marks a pivotal moment in the evolving regulatory landscape for cryptocurrency-based financial products in the U.S.

While the acknowledgment confirms that the SEC has begun its formal review process, it does not indicate approval or rejection. The decision timeline remains uncertain, but market participants are watching closely as momentum builds behind XRP-related investment vehicles.

What the SEC Acknowledgment Means for Crypto Markets

The SEC’s acceptance of Grayscale’s filing signals that regulators are actively engaging with crypto asset proposals beyond Bitcoin and Ethereum. This is particularly significant given XRP’s complex legal history with the SEC, which previously sued Ripple Labs in 2020 over allegations of unregistered securities sales.

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Grayscale’s proposed ETF would transform the existing GDLC fund—a diversified portfolio including XRP, Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Avalanche (AVAX)—into a publicly traded product. Currently, BTC dominates the fund’s assets under management (AUM), accounting for approximately 77%. However, the inclusion of XRP introduces a unique dynamic, especially as Ripple continues to push for broader institutional recognition.

Nate Geraci, President of the ETF Store, confirmed the SEC’s acknowledgment via social media, reigniting speculation about the future of XRP ETFs. Although public comments are now open, the agency has not set a deadline for its final decision.

Core Keywords Driving Market Interest

Key terms shaping the conversation around this development include:

These keywords reflect growing investor interest in regulated, accessible pathways to gain exposure to digital assets. With spot Bitcoin ETFs already achieving massive inflows—surpassing $470 million in a single day—market watchers believe a successful XRP ETF could follow a similar trajectory, albeit with longer regulatory hurdles.

Could Grayscale Have a Strategic Advantage?

Grayscale may hold a strategic edge over other applicants due to its established track record and prior legal victories. In 2023, the firm won a landmark court case compelling the SEC to reconsider its denial of a spot Bitcoin ETF, setting a precedent that could influence future decisions.

Eric Balchunas, Senior ETF Analyst at Bloomberg, suggests that combining highly liquid assets like Bitcoin with select altcoins such as XRP might improve an ETF’s chances of approval. This hybrid approach could satisfy regulators concerned about market manipulation and liquidity risks associated with less-established cryptocurrencies.

In contrast, Bitwise and Canary Capital have each filed standalone spot XRP ETF applications. Bitwise confirmed its submission in early October, aiming to clarify confusion caused by a fake BlackRock-led XRP ETF rumor from late 2023. Canary Capital followed shortly after, proposing an ETF that tracks XRP using the CME CF Ripple Index—a regulated pricing benchmark—while avoiding derivatives.

Despite these efforts, neither Bitwise nor Canary Capital has received official acknowledgment from the SEC as of now.

FAQ: Understanding the XRP ETF Landscape

Q: What is an XRP ETF?
A: An XRP exchange-traded fund (ETF) is a financial product that allows investors to gain exposure to the price of XRP without directly owning the cryptocurrency. It trades on traditional stock exchanges and is subject to regulatory oversight.

Q: Why is Grayscale’s filing significant?
A: Grayscale is one of the most prominent digital asset managers globally. Its previous success in challenging the SEC boosts confidence that its XRP-linked application could eventually gain approval, even if delayed.

Q: Has the SEC approved any XRP ETF yet?
A: No. The SEC has only acknowledged Grayscale’s filing; no decisions have been made. Approval could take months or even years, similar to the decade-long wait for Bitcoin ETFs.

Q: How does Ripple’s lawsuit affect XRP ETF prospects?
A: The ongoing legal battle between Ripple and the SEC over whether XRP is a security plays a critical role. A favorable resolution could significantly increase the likelihood of ETF approval.

Q: What role does market demand play?
A: Growing institutional demand for diversified crypto exposure beyond BTC and ETH strengthens the case for altcoin ETFs. Investors seek regulated access to enterprise blockchain solutions like Ripple’s payment network.

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Broader Implications for Digital Asset Regulation

Brad Garlinghouse, CEO of Ripple, remains confident that an XRP ETF is “inevitable,” citing the recent approvals of spot Bitcoin and Ethereum ETFs as precedent. His optimism stems from Ripple’s partial legal victory in July 2023, when a U.S. district court ruled that XRP is not inherently a security when sold to retail investors.

This nuanced regulatory distinction may provide a foundation for approving an ETF focused on institutional-grade custody and transparent trading mechanisms.

Moreover, Canary Capital emphasized in its filing that increasing demand exists for “sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum”—particularly among institutional investors interested in enterprise blockchain applications. This shift underscores a maturing market where digital assets are increasingly viewed as legitimate components of diversified portfolios.

Final Outlook: Patience Required Amid Regulatory Uncertainty

While enthusiasm surrounds Grayscale’s XRP ETF proposal, history suggests patience will be essential. It took nearly ten years for the SEC to approve a spot Bitcoin ETF despite overwhelming market demand. Regulatory caution, especially regarding altcoins with unresolved legal questions, means delays are likely.

However, each step forward—including formal acknowledgments and public comment periods—represents progress toward mainstream crypto adoption. As more asset managers enter the space and regulatory frameworks evolve, the path to approval may gradually clear.

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Ultimately, the fate of the XRP ETF hinges not just on technical filings but on broader regulatory philosophy. Will the SEC extend its recent openness to crypto products beyond BTC and ETH? The answer could redefine the future of digital asset investing in America.