Grayscale’s Bold Move: XRP and Trump’s Crypto Picks Set to Shake Up ETF Market?

Grayscale has just taken a major step toward reshaping the crypto investment landscape. The asset manager has filed an updated S-3 registration statement for its Digital Large Cap Exchange-Traded Fund (ETF), positioning it as a groundbreaking product featuring some of the most high-profile digital assets, including XRP and a selection of cryptocurrencies once highlighted by U.S. President Donald Trump.

A High-Stakes Play for SEC Approval

The race for cryptocurrency ETFs has intensified, and Grayscale’s latest filing shows it’s not backing down. The firm’s ETF, dubbed the Grayscale Digital Large Cap ETF (GDLC), aims to provide diversified exposure to top cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and, notably, XRP.

The New York Stock Exchange (NYSE) Arca submitted a separate 19b-4 application in October 2024 to list GDLC, which is currently under SEC review. The regulatory body is expected to issue an initial decision by May 3, with a final ruling slated for July 2. If approved, GDLC could become a game-changer in the ETF space, allowing investors easy access to a carefully curated basket of leading digital assets.

Grayscale confirmed the move in a statement on X (formerly Twitter), writing:

“Today, we filed a registration statement on Form S-3 to register shares of Grayscale Digital Large Cap Fund (ticker: GDLC) under the Securities Act of 1933. This is another important step toward uplisting GDLC as an ETP. GDLC holds the top 5 crypto assets by market cap.”

However, Grayscale made it clear that the ETF’s launch is entirely contingent on SEC approval. Without a green light for the NYSE Arca listing, GDLC won’t proceed, keeping investors on edge as they await the regulatory outcome.

XRP and Trump’s Crypto Picks—A Strategic Move?

Perhaps the most intriguing aspect of GDLC is its inclusion of XRP. While XRP has long been a controversial asset due to its legal battles with the SEC, its addition to Grayscale’s ETF signals growing confidence in its legitimacy. Moreover, Trump has previously hinted at building a “digital asset stockpile” featuring major cryptocurrencies, including XRP, Bitcoin, and Ethereum. Whether intentional or not, GDLC’s composition aligns closely with assets that could appeal to a politically driven investment narrative.

With Trump making headlines for his evolving stance on crypto, some analysts speculate that GDLC’s strategic selection of assets could attract politically motivated investors looking for exposure to the digital assets Trump has mentioned in his policy discussions.

A Tipping Point for Crypto Index ETFs?

Traditional financial markets have long embraced index-based ETFs, such as those tracking the S&P 500 and NASDAQ. Now, that trend is catching fire in the crypto space. Grayscale’s push for GDLC reflects growing demand for diversified crypto investment products that provide exposure to multiple assets without requiring direct management of individual tokens.

If approved, GDLC would allow retail and institutional investors to gain exposure to the top-performing digital assets in one fell swoop—potentially making it a landmark moment in crypto ETF history. The move could also set a precedent for other index-based crypto funds, ushering in a new wave of investment vehicles aimed at simplifying crypto exposure.

What’s Next?

With SEC deadlines looming, all eyes are on regulators as they weigh their decision. If the SEC grants approval, GDLC could pave the way for more diversified crypto investment products, further legitimizing digital assets in traditional finance. But if history has taught us anything, the SEC remains a formidable hurdle.

For now, investors are left in suspense. Will GDLC be the breakthrough crypto ETF that redefines the market, or will it become another casualty of regulatory red tape? One thing is certain—Grayscale is making bold moves, and the crypto world is watching closely.

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