Since the approval of a spot Bitcoin ETF in January of this year, billions of money have entered the cryptocurrency market. Following the success of Bitcoin ETFs, the industry advocated for an ETH ETF, which was approved by the SEC six months later, in July.
Right now, the industry is focusing on ETFs for XRP and other cryptocurrencies. Canary Capital and Bitwise recently submitted applications for XRP ETFs in order to support this initiative This has generated enthusiasm within the XRP community because the introduction of an exchange-traded fund may result in an injection of institutional capital into the XRP market, which might raise the value of the coin.
SEC Acknowledges Grayscale Conversion
Nate Geraci, the president of ETF Store and co-founder of ETF Institute, revealed earlier today on X (previously Twitter) that the Securities and Exchange Commission (SEC) has approved the plan to turn Grayscale Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF).
The goal of the American digital asset management firm, Grayscale Investments, was to turn its GDLC—which contained well-known cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX)—into exchange-traded funds (ETFs).
According to Geraci, about 77% of Bitcoin, 17% of Ethereum, and the remainder of other cryptocurrencies are held by the GDLC. By transforming these assets into exchange-traded funds (ETFs), Grayscale hopes to make them accessible and appropriately regulated for its investors. Geraci added that the SEC is currently asking for public opinion to gather feedback from potential investors.
Ripple CEO Says XRP ETF is Inevitable
Brad Garlinghouse, the CEO of Ripple, has reiterated his belief that an XRP ETF will be approved shortly. Garlinghouse and his group of executives think an XRP ETF is “inevitable,” even though the blockchain giant company is currently involved in a protracted legal battle with the SEC.
Garlinghouse stated in a Bloomberg interview that interest in XRP has increased and that two ETF filings centered on XRP, Canary Capital Group, and Btwise, have recently been submitted.
He believed that an XRP ETF would soon be introduced to the market, contributing to the larger trend of institutionalized involvement in the cryptocurrency space.
Conclusion
Following the successful approval of Bitcoin and Ethereum ETFs, the potential for an XRP ETF marks a significant shift toward institutional adoption in the cryptocurrency market. With Canary Capital and Bitwise filing applications for XRP ETFs, XRP supporters are expressing optimism, seeing this as an avenue for new capital inflow, potentially boosting XRP’s market value.
Additionally, Grayscale’s move to convert its Digital Large Cap Fund (GDLC), which includes XRP, into an ETF could provide broader market exposure to a basket of major cryptocurrencies under regulated conditions. Ripple CEO Brad Garlinghouse’s confidence in the “inevitability” of an XRP ETF aligns with the growing trend of legitimizing digital assets through traditional financial structures, signaling a promising future for crypto integration into mainstream finance.
