The U.S. Securities and Exchange Commission (SEC) has approved Grayscale’s proposal to convert its Digital Large Cap Fund into a spot exchange-traded fund (ETF).
This decision brings together Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), offering a new investment vehicle for U.S. investors.
Grayscale’s BTC, ETH, XRP, ADA Large Fund Conversion to ETF Approved
Grayscale’s GDLC Fund primarily invests in Bitcoin, which makes up over 80% of the fund’s holdings. Ethereum follows with an 11% share, while Solana, XRP, and Cardano each have smaller allocations of 2.8%, 4.8%, and 0.8%, respectively. This approval is significant because it offers a regulated way for investors to gain exposure to a mix of major cryptocurrencies.
The approval also builds upon Grayscale’s previous successes with its Bitcoin and Ethereum funds. This approval follows a legal victory for Grayscale in 2024, when it successfully converted its Bitcoin Trust into a spot Bitcoin ETF. As a result of this legal win, the SEC appears more inclined to approve similar products.
“The approval of GDLC as a spot ETF could pave the way for future multi-asset crypto ETFs,” noted Bloomberg ETF analyst James Seyffart.
The approval comes after an amended S-3 filing, signaling that Grayscale has been in active dialogue with the SEC. ETF Store President Nate Geraci predicted that Grayscale’s request would be successful due to the strong regulatory momentum in favor of crypto ETFs.
SEC’s Potential Shift on Crypto ETF Approval Process
Concurrently, the SEC is considering permitting crypto ETFs to launch without requiring a 19b-4 filing, a significant procedural shift. The 19b-4 filing currently requires a lengthy process for the approval of any new exchange-traded products.
If the SEC moves forward with this change, it could streamline the approval process for crypto-based ETFs, making it easier for other fund managers to bring products to market more quickly.
This potential shift is part of broader ongoing discussions between the SEC and exchanges to establish more standardized listing procedures for crypto ETFs. If successful, this change could lead to a more efficient approval process, which may accelerate the development of new crypto ETFs.
Impact on Other Crypto ETFs
Since GDLC has already been approved, more crypto-related ETFs are expected to be approved within the following months. The SEC is already considering several single-token ETFs tracking Solana and XRP.
Bloomberg analysts estimate that the probabilities that these proposals are going to get passed by the end of the year 2025 are as high as 95%.
This will run the risk of an increased adoption of different cryptocurrencies in exchange-traded products. This means that once more crypto ETFs receive green light, it may stimulate investor trust and trigger a wave of capital into the cryptocurrency field that historically has found it difficult to achieve a mainstream foothold.
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary .
With a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets.
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Source: https://coingape.com/sec-approves-grayscales-btc-eth-xrp-ada-fund-conversion-to-etf/