- SEC will rule by July 2 on Grayscale’s ETF holding BTC, ETH, XRP, ADA, and SOL.
- The proposed fund holds over $762M in assets, mostly in Bitcoin and Ethereum.
- Approval could pave the way for future altcoin spot ETFs in the U.S. market.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s amended request to change its Digital Large Cap Fund (GDLC) into a spot cryptocurrency exchange-traded fund (ETF). This ruling triggers a critical review process and a final decision is expected to be made by July 2.
Some of the most significant crypto assets that the GDLC fund currently has under its portfolio are Bitcoin (80.8%), Ethereum (11.07%), XRP (4.63%), Solana (2.75%), and Cardano (0.75%). If it is approved, the ETF will provide large-scale exposure to these digital assets in a single, regulated asset. Grayscale’s shift reflects increased interest by investors in having diversified exposure to cryptocurrencies using traditional financial channels.
Grayscale’s spot ETF application comes as the SEC reviews several filings from major firms. The regulator had already approved the conversion of Grayscale’s Bitcoin Trust (GBTC) into a spot ETF earlier this year, following a legal victory by the firm. That ruling set a precedent and raised expectations for additional approvals, including for multi-asset products.
Grayscale’s Proposal May Broaden Retail and Institutional Access
The proposed ETF would mark the first U.S. spot-based crypto ETF to include altcoins like XRP, Solana, and Cardano. While previous ETF approvals centered on Bitcoin and Ethereum, this filing aims to expand regulated access to a broader range of assets.
Unlike futures-based products, spot ETFs allow investors to gain direct exposure to underlying assets. This structure enhances transparency and simplifies portfolio diversification, especially for institutions managing regulatory and custody requirements.
The GDLC fund, which has more than 762 million assets operating in it, is currently trading in the private market. Converting it to a publicly traded ETF would place it on conventional exchanges, allowing broader market participation. According to ETF Store President Nate Geraci, the SEC’s engagement with Grayscale signals increasing interest in the project. This development supports even more expanded crypto products as regulatory clarity gradually grows.
Also Read: Solana Bullish Breakout: Will ETFs Push Prices Beyond $200?
Market Awaits Potential First Multi-Asset Crypto ETF Approval
Bloomberg ETF analysts estimate a 95% chance of approval for the Grayscale GDLC spot ETF. If greenlit, the product would be the first of its kind in the U.S. to package leading altcoins alongside Bitcoin and Ethereum.
It comes after a wave of applications by companies such as Franklin Templeton and 21Shares, which are all seeking to launch single-asset spot ETFs. Nevertheless, its multi-asset framework might be able to differentiate Grayscale, with the aim of providing diversified exposure within a single product.
The SEC has also postponed decisions on Grayscale’s proposed Cardano and Avalanche spot ETFs. However, the approval of the GDLC conversion might pave the way toward future petitions against specific tokens, such as XRP or SOL. The markets remain cautious pending the July 2 decision deadline.
Also Read: REX-Osprey Nears Launch of Solana and Ethereum Staking ETFs With SEC Approval
