Grayscale Digital Large Cap ETF Including XRP Gains SEC Approval

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The cryptocurrency investment landscape has taken a significant leap forward with the recent approval of the Grayscale Digital Large Cap Fund, a new Exchange Traded Fund (ETF) that includes XRP among its underlying digital assets. While a standalone Grayscale XRP ETF has not yet been approved by the U.S. Securities and Exchange Commission (SEC), this multi-asset ETF marks a pivotal development for XRP and other major altcoins.

This milestone reflects growing institutional confidence in digital assets and signals a broader shift toward diversified crypto exposure in regulated financial products.

What Is the Grayscale Digital Large Cap Fund?

The Grayscale Digital Large Cap Fund is an ETF designed to offer investors exposure to a basket of leading cryptocurrencies. Unlike single-asset ETFs such as Bitcoin or Ethereum-focused funds, this new offering provides diversified access to the top-tier digital asset market.

Approved by the SEC in 2025, the fund is structured as a Cayman Islands limited liability company and is managed by Grayscale Investments Sponsors, LLC, a wholly owned subsidiary of Digital Currency Group (DCG)—a pioneer in blockchain innovation and crypto venture development.

👉 Discover how diversified crypto ETFs are reshaping investment strategies in 2025.

Key Partners and Custodians

To ensure regulatory compliance, security, and operational efficiency, the fund has partnered with industry-leading institutions:

These partnerships underscore the fund’s legitimacy and alignment with both crypto-native and traditional financial standards.

Supported Digital Assets

The fund’s initial portfolio includes five major cryptocurrencies:

Bitcoin dominates the allocation at nearly 80%, reflecting its position as the market leader. Ethereum follows with over 11%, while XRP is allocated approximately 4.99%—a notable inclusion given its regulatory history.

Although not a dedicated XRP ETF, this exposure validates XRP’s status as a large-cap digital asset and may pave the way for a future standalone XRP ETF.

Dynamic Asset Composition

One of the fund’s defining features is its flexibility. The asset composition is not fixed. It is linked to the CoinDesk 20 Index, which evaluates and selects top digital assets based on market capitalization, liquidity, and regulatory compliance.

This means that if new assets qualify for inclusion in the index—such as emerging layer-1 blockchains or regulated stablecoins—they can be added to the ETF in the future.

This dynamic model ensures the fund remains relevant and responsive to market evolution.

Strategic Objectives of the Fund

The Grayscale Digital Large Cap Fund aims to achieve three core goals:

  1. Provide Broad Large-Cap Crypto Exposure
    By including multiple top-tier digital assets, the fund allows investors to gain diversified exposure without managing multiple wallets or exchanges.
  2. Minimize Transaction Costs
    The fund adopts a low-turnover strategy, reducing trading frequency and associated fees—ideal for long-term investors seeking stable growth.
  3. Enable Market Replicability
    The portfolio is structured so that investors could theoretically replicate it through direct purchases on public markets, enhancing transparency and trust.

These objectives align with institutional investor needs for simplicity, security, and regulatory clarity.

Implications for XRP and Altcoins

The inclusion of XRP in a regulated ETF is a major win for Ripple and its community. Despite past legal challenges, XRP’s presence signals renewed market acceptance and regulatory progress.

👉 Learn how XRP’s inclusion in major funds is driving institutional adoption.

More broadly, the integration of four major altcoins—ADA, SOL, ETH, and XRP—into a single SEC-approved product suggests the end of the so-called “altcoin winter.” For years, altcoins struggled to gain traction in traditional finance due to volatility and regulatory uncertainty. Now, they are being recognized as legitimate components of a diversified digital asset portfolio.

Market Impact and Future Outlook

With increased accessibility through ETFs, demand for XRP and other altcoins is expected to rise. This could lead to:

Moreover, success of this multi-asset model may encourage other asset managers to launch similar diversified crypto ETFs, accelerating mainstream adoption.

Frequently Asked Questions (FAQ)

Is there a dedicated Grayscale XRP ETF?

No, there is currently no standalone Grayscale XRP ETF approved by the SEC. However, XRP is included in the newly approved Grayscale Digital Large Cap Fund, which offers indirect exposure.

Why is XRP only 4.99% in the ETF?

The allocation reflects current market capitalization and index weighting. Bitcoin and Ethereum dominate due to their larger market size. The percentage may change if XRP’s market position strengthens.

Can retail investors buy shares in this ETF?

Yes, the ETF will be available to both institutional and retail investors through traditional brokerage platforms that support ETF trading.

How does the CoinDesk 20 Index influence the fund?

The fund’s holdings are based on this index, which periodically reviews and updates its components based on objective criteria like liquidity, market cap, and security. Changes in the index may lead to adjustments in the ETF’s portfolio.

Does this approval mean XRP is fully cleared by regulators?

While not a definitive legal clearance, inclusion in an SEC-approved product indicates growing regulatory acceptance. It suggests that XRP is being treated similarly to other major digital assets.

What are the risks of investing in this ETF?

As with any crypto-related investment, risks include market volatility, regulatory changes, and technological vulnerabilities. Investors should conduct thorough research before participating.

The Road Ahead for Crypto ETFs

The approval of the Grayscale Digital Large Cap Fund represents more than just a product launch—it's a signal of maturation in the digital asset ecosystem. As regulatory frameworks evolve and institutional participation grows, we can expect more innovative financial products that blend crypto with traditional investment mechanics.

For investors, this means easier access, greater transparency, and improved risk management tools. For projects like XRP, it means validation and expanded use cases beyond speculative trading.

👉 Stay ahead of the next wave of crypto innovation with real-time market insights.

Core Keywords

This development underscores a transformative phase in finance—one where digital assets are no longer fringe experiments but core components of modern portfolios. As 2025 unfolds, watch for further approvals, product expansions, and deeper integration between blockchain technology and global markets.