The landscape for XRP in the U.S. financial ecosystem is shifting rapidly—and in favor of broader institutional adoption. Recent regulatory developments have reignited optimism around the potential approval of a standalone XRP spot ETF, marking what could be a transformative moment for the digital asset.
For years, XRP faced an uphill battle due to its prolonged legal dispute with the U.S. Securities and Exchange Commission (SEC). However, with that chapter effectively closed and new precedents being set in crypto regulation, momentum is building like never before.
Grayscale’s Multi-Asset Spot ETF Ushers in a New Era
On July 1, 2025, the SEC approved Grayscale’s proposal to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund. This decision wasn’t just symbolic—it was strategic. The newly authorized ETF holds five major cryptocurrencies directly: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
👉 Discover how this landmark approval could open the floodgates for more crypto ETFs.
This marks the first time XRP has been included in a regulated, spot-based ETF available to U.S. investors. Unlike futures-based ETFs that track price movements without holding actual tokens, GDLC purchases and secures real XRP on-chain. That distinction is critical.
Prior to this, the only XRP-linked ETFs approved were derivative products such as Teucrium’s 2X and Volatility Shares’ 1X offerings. While those provided market exposure, they lacked the legitimacy of direct ownership. Now, with XRP officially part of a spot ETF framework, regulators have effectively acknowledged its eligibility for inclusion in regulated investment vehicles.
This precedent strengthens the case for dedicated XRP spot ETFs. If the SEC allows XRP in a multi-asset fund, rejecting a single-asset version becomes harder to justify—especially without consistent reasoning.
XRP’s Institutional Leap Forward
The inclusion of XRP in GDLC represents more than just portfolio diversification—it's a signal of regulatory normalization. With approximately $754.74 million in assets under management at launch on NYSE Arca, GDLC gives institutional investors a compliant pathway to gain exposure to XRP alongside Bitcoin and Ethereum.
Within the fund, XRP holds a 4.8% allocation, while BTC dominates at 80.4% and ETH follows at 11.15%. Though modest in weighting, XRP’s presence matters. It places the asset on equal regulatory footing with other top-tier digital currencies within a transparent, audited structure.
This shift comes on the heels of the Ripple-SEC lawsuit resolution, which concluded that XRP sales to retail investors did not constitute unregistered securities offerings. That ruling laid the groundwork for increased institutional confidence—and now, tangible product development.
Growing Pressure for Standalone XRP ETFs
With XRP already vetted and approved within a spot ETF context, at least ten standalone XRP spot ETF applications are now under active review by the SEC. Among the filers are industry heavyweights:
- Grayscale
- Bitwise
- Franklin Templeton
These firms are seeking approval for funds that would track only XRP’s price, offering investors direct exposure without dilution across other assets.
Bitwise, for example, is pursuing conversion of its Crypto Index Fund (BITW) into a spot ETF. BITW currently includes ten cryptocurrencies—including XRP—and has demonstrated strong demand from institutional clients. Approval would further validate XRP’s status as a core digital asset worthy of independent investment products.
Regulatory consistency now becomes key. Having greenlit a multi-asset fund containing XRP, the SEC faces mounting pressure to treat standalone applications fairly. Legal experts suggest that arbitrary denial could invite challenges based on unequal treatment—a risk regulators may prefer to avoid.
Timeline and What to Expect Next
The SEC has set deadlines extending into October 2025 for final decisions on several pending XRP ETF filings. While no guarantees exist, market analysts increasingly view approval as inevitable rather than speculative.
Several factors support this outlook:
- A clearer regulatory stance post-Ripple ruling
- Precedent from GDLC’s approval
- Rising institutional demand for diversified crypto access
- Increasing competition among asset managers to capture early-mover advantage
If even one application receives approval by late 2025, it could trigger a wave of similar product launches, accelerating capital inflows into XRP and expanding its reach beyond retail circles.
👉 See how early movers are positioning themselves ahead of potential ETF approvals.
Frequently Asked Questions (FAQ)
Q: What is a spot ETF, and why does it matter for XRP?
A: A spot ETF holds the actual underlying asset—in this case, real XRP tokens—rather than futures contracts or derivatives. This provides investors with direct exposure and reflects regulatory acceptance of XRP as a legitimate asset class.
Q: Has the SEC ever approved an XRP spot ETF yet?
A: Not directly. However, the SEC has approved Grayscale’s multi-asset spot ETF (GDLC), which includes XRP as a component. This indirect approval sets a powerful precedent for standalone filings.
Q: How many XRP spot ETF applications are currently pending?
A: Approximately ten applications are under SEC review, submitted by major financial firms including Grayscale, Bitwise, and Franklin Templeton.
Q: What role did the Ripple vs. SEC lawsuit play in ETF prospects?
A: The court’s determination that XRP is not inherently a security—particularly when sold to retail investors—removed a major regulatory barrier. This clarity has paved the way for institutional products like ETFs.
Q: When will we know if an XRP spot ETF gets approved?
A: Final decisions are expected by October 2025. The SEC must either approve or deny each application by their respective deadlines.
Q: Could other altcoins benefit if an XRP spot ETF is approved?
A: Absolutely. Approval would likely encourage filings for spot ETFs on other large-cap altcoins like Solana or Cardano, expanding the crypto ETF landscape beyond Bitcoin and Ethereum.
Final Outlook: Momentum Is Building
The path toward a dedicated XRP spot ETF has never been clearer. Regulatory headwinds have eased, legal clarity has improved, and institutional infrastructure is adapting rapidly.
Grayscale’s breakthrough approval didn’t just open the door—it kicked it wide open. With multiple high-profile applications in the pipeline and growing market anticipation, 2025 could be the year XRP achieves full integration into mainstream finance.
👉 Stay ahead of the curve and explore emerging opportunities in regulated crypto investing.
While nothing is certain until official announcements are made, all signs point toward increased legitimacy and accessibility for XRP in the months ahead. For investors watching closely, this may be one of the most pivotal moments in the asset’s history.
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