Historic Day: Grayscale Large Cap ETF Launches As SEC Opens Flood Gates

TL;DR: The SEC approved Grayscale's multi-crypto ETF (including XRP) on September 17, 2025, alongside game-changing generic listing standards that could unleash 100+ new crypto ETFs. With 11 XRP ETF applications pending October deadlines, this regulatory shift marks crypto's biggest breakthrough yet.

The cryptocurrency landscape transformed overnight on September 17, 2025, as the U.S. Securities and Exchange Commission (SEC) approved Grayscale's Digital Large Cap Fund (GDLC) – the first multi-cryptocurrency ETF to include Bitcoin, Ethereum, XRP, Solana, and Cardano. More importantly, the agency simultaneously adopted revolutionary generic listing standards that streamline crypto ETF approvals, potentially unleashing a flood of new investment products.

Grayscale Makes History with Multi-Crypto ETF

Grayscale CEO Peter Mintzberg announced the groundbreaking approval on X, describing GDLC as the "FIRST multi crypto asset ETP to market." The fund, which has over $915 million in assets under management and trades at approximately $57.70 per share, provides diversified exposure to five major cryptocurrencies through a single regulated investment vehicle.

The CoinDesk 5 Index-tracked fund currently allocates roughly 80% to Bitcoin, with the remainder distributed among Ethereum (11%), XRP (5%), Solana, and Cardano. This milestone represents years of regulatory evolution, as GDLC originally launched as an over-the-counter fund in 2018 before gaining ETF status.

Game-Changing Regulatory Framework

The SEC's approval of generic listing standards for commodity-based trust shares represents the most significant regulatory development for crypto ETFs since Bitcoin ETFs launched in 2024. Under the new framework, exchanges can list qualifying crypto ETFs without requiring individual SEC approval for each product – slashing review times from up to 240 days to approximately 70 days.

SEC Chairman Paul Atkins emphasized the decision's importance: "By approving these generic listing standards, we are ensuring that our capital markets remain the best place in the world to engage in the cutting-edge innovation of digital assets."

Key Requirements for Fast-Track Approval

The new standards allow automatic listing if cryptocurrencies meet specific criteria:

• Trade on markets with surveillance-sharing agreements
• Have active CFTC-regulated futures contracts for at least six months
• Represent at least 40% of an existing listed ETF

Bloomberg ETF analyst Eric Balchunas noted that "the last time they implemented generic listing standards for ETFs, launches tripled," predicting "north of 100 crypto ETFs launched in the next 12 months."

XRP ETF Race Intensifies with October Deadlines

The regulatory breakthrough comes at a critical moment for XRP, with 11 major asset managers awaiting SEC decisions on spot XRP ETF applications. The lineup includes industry giants:

• Grayscale: Decision deadline October 18, 2025
• 21Shares: Decision deadline October 19, 2025
• Bitwise: Decision deadline October 20, 2025
• Canary Capital: Decision deadline October 24, 2025
• WisdomTree: Decision deadline October 25, 2025
• CoinShares: Decision deadline October 25, 2025
• Franklin Templeton: Extended deadline November 14, 2025

Market Sentiment Remains Bullish

Despite recent delays, Polymarket odds for XRP ETF approval by 2025 hover around 88-90%, with Bloomberg analysts assigning 95% approval probability. This optimism stems from XRP's clarified regulatory status following Ripple's legal victory against the SEC, which established XRP's commodity classification alongside Bitcoin and Ethereum.

XRP's Path Forward: Legal Clarity Meets Institutional Demand

XRP's journey to ETF approval gained significant momentum after Judge Analisa Torres ruled in 2023 that XRP sales on exchanges don't constitute securities transactions. This landmark decision, combined with the SEC's March 2025 appeal withdrawal, positioned XRP alongside Bitcoin and Ethereum as a commodity rather than a security.

The regulatory clarity couldn't come at a better time for Ripple's cross-border payment ambitions. Institutional adoption through ETFs could accelerate XRP's utility in the $150 trillion global payments market, where Ripple competes directly with SWIFT's traditional infrastructure.

First XRP ETF Already Trading

While spot ETF applications await approval, the REX-Osprey XRP ETF (XRPR) launched on September 18, 2025, providing leveraged XRP exposure through futures contracts. The fund's performance will serve as an important bellwether for institutional demand ahead of spot ETF decisions.

Market Implications: The Altcoin Season Catalyst

The convergence of Grayscale's approval, generic listing standards, and pending XRP decisions could trigger the long-awaited "altcoin season." JPMorgan analysts predict approved altcoin ETFs could attract billions in institutional investment, significantly impacting underlying asset prices and market capitalizations.

Beyond XRP, the new framework opens pathways for ETFs tracking Solana, Litecoin, Dogecoin, Avalanche, and Polkadot – all of which have futures contracts on regulated exchanges. The 92 pending crypto ETF applications represent unprecedented institutional interest in digital assets.

Institutional Adoption Accelerates

Traditional finance giants including BlackRock, Fidelity, and Franklin Templeton have already demonstrated their commitment to crypto ETFs through Bitcoin and Ethereum products. The expansion into altcoins through regulated vehicles removes technical barriers for pension funds, endowments, and other institutional investors previously unable to access these markets directly.

A New Era for Crypto Finance

September 17, 2025, will be remembered as the day crypto ETFs truly went mainstream. Grayscale's multi-crypto fund launch, combined with streamlined approval processes, creates an inflection point that could reshape how institutional capital flows into digital assets.

For XRP specifically, the convergence of legal clarity, institutional-grade investment vehicles, and Ripple's real-world utility in payments creates a compelling long-term narrative. With October deadlines approaching for multiple XRP ETF applications, the next month could determine whether XRP joins Bitcoin and Ethereum in the regulated ETF ecosystem.

The revolution has begun – and it's happening faster than most predicted.

Sources

• SEC Press Release: Generic Listing Standards
• CoinDesk: SEC Approvals
• The Block: Grayscale Multi-Crypto Fund
• Coinpedia: XRP ETF Applications
• Bloomberg Intelligence: Market Analysis
• Grayscale Official Announcement

DISCLAIMER: This newsletter is for informational purposes only and does not constitute investment advice, advertising, or a recommendation to buy, sell, or hold any securities. This content is not sponsored by or affiliated with any of the mentioned entities. Investments in cryptocurrencies or other financial assets carry significant risks, including the potential for total loss, extreme volatility, and regulatory uncertainty. Past performance is not indicative of future results. Always consult a qualified financial professional and conduct thorough research before making any investment decisions.