The U.S. Securities and Exchange Commission has issued a statement seeking comment on its Trading Division's review of Grayscale's Digital Large Cap (GDLC) Fund , which could become the first spot XRP ETF . The altcoin represents 5.99% of the fund's total holdings.

The Commission also requested comments on the Bitwise Crypto Index Fund , which holds ten assets, including XRP. The SEC set a deadline for comments of August 22, indicating it may approve the launch of these funds after that date.

💥The SEC wants to see clearly

In an official notice published in the Federal Register , the SEC announced the opening of a public comment period , inviting the public and industry participants to comment on the Division of Trading and Markets' decision to approve a proposed regulatory change. This proposal would allow the New York Stock Exchange (NYSE) to list and trade shares of the Grayscale Digital Large Cap (GDLC) fund.

This consultation was launched under Rule of Practice 431 , which provides that, in certain circumstances, decisions taken under delegation may be reviewed by the full Commission.

Accordingly, all interested parties—investors, companies, industry experts, and members of the public—have until August 22nd to submit formal comments, either in support of or against the approval of the Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and Ripple (XRP) ETFs contained in the GDLC Fund. These comments will be considered by the SEC before affirming or reversing the Division's initial approval.

The SEC's Division of Trading approved the GDLC Fund on July 1 but then imposed a stay on the approval pending a different order from the Commission. In its recent notice, the Commission confirmed that the stay remains in effect until further notice.

Grayscale has already challenged this suspension related to its XRP ETF, arguing that the SEC lacks the authority to impose it under Section 19b of the Exchange Act. The asset manager and the NYSE also argued that the Exchange Act overrides Commission Rules of Practice, thus rendering the order invalid.

Section 19b of the Exchange Act requires the SEC to approve or reject the proposed regulatory change within 240 days . If the SEC does not make a decision within this period, the proposal is automatically deemed approved . The 240-day deadline was July 1, and because the Commission did not make a decision, Grayscale argued that it had received automatic approval for the fund.

💥The SEC also seeks comment on the Bitwise Multi-Asset Fund.

In another notice published in the Federal Register, the SEC requested comments regarding the Division’s approval order for the Bitwise 10 Crypto Index Fund (BITW) , which is also classified as an XRP ETF, given that the altcoin is one of the assets the fund will track.

Specifically, XRP represents 5.9% of the fund's total holdings. BITW also holds Bitcoin, Ethereum, Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot.

The SEC's Division of Trading had approved the NYSE's proposed regulatory change for the listing and trading of BITW shares. However, similar to the Grayscale case, the Commission suspended this approval order pending a review of the decision. In its most recent notice, the SEC confirmed that the suspension remains in effect until further notice from the Commission.

Following this warning, Bloomberg analyst James Seyffart commented that a clearer picture of the evolution of these funds should emerge before the end of the month. It remains to be seen whether the Commission will greenlight the launch of these XRP ETFs after the August 22 deadline.

It is worth noting that Bloomberg analyst Eric Balchunas predicted that the SEC could approve more spot funds that will exclusively hold XRP by October .

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