Grayscale's multi-crypto ETF receives SEC approval, raising questions about a possible Ripple (XRP) ETF in the near future.
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has approved Grayscale Investments' application to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This move marks a step towards increased regulation and mainstream acceptance of digital assets.
According to investment advisor Nate Geraci, this approval was predicted earlier in the week. The green light for GDLC is expected to begin trading shortly, pending final operational readiness and exchange coordination with NYSE Arca.
The GDLC fund's structure allows for daily share creation and redemption, potentially reducing the premium and discount issues that affected GDLC as a closed-end product. This converted ETF will offer exposure to several cryptocurrencies within a single structure, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA).
The approved GDLC is seen as a positive signal for potential future approval of altcoin ETFs. In fact, the probability of SEC approving spot ETFs for Litecoin (LTC), Solana (SOL), and XRP this year is 95%, according to Bloomberg analysts James Seyffart and Eric Balchunas.
For XRP, Balchunas places the chance of approval at about 85% for September or October 2025, following the SEC’s updated rules easing approvals, such as the six-month futures trading criterion and a shortened review timeline.
Regarding Solana (SOL), while no explicit probability percentages are given, 21Shares has actively updated its spot SOL ETF application to improve its chances, signaling serious interest.
Canadian financial authorities have already approved a couple of spot ETFs tracking XRP in June, specifically 3iQ's XRPQ and Purpose Investment's XRPP. This approval of GDLC has grown optimism among investors for potential future approval of altcoin-specific ETFs.
It's worth noting that the focus of these experts and regulators in 2025 is on facilitating quicker spot ETF approvals for assets with established futures markets and improving fund structures (like in-kind creations). XRP is notably leading in predicted approval chances, while newer projects like Solana have active filings but without specified probability numbers for 2022 or earlier.
The GDLC ETF will introduce one of the first regulated products tracking several digital assets, joining Grayscale's existing lineup of converted products following the approval of the firm's Bitcoin Trust ETF (GBTC) in January 2021. However, Grayscale has stated that any asset subject to enforcement action may be removed from the index during rebalancing.
Geraci suggests that the GDLC fund could be seen as a low-risk "test run" for the SEC before considering other crypto assets. The inclusion of various cryptocurrencies in GDLC's structure is seen as a positive signal for potential future approval of altcoin ETFs.
This approval is a significant milestone for the cryptocurrency industry, signaling increased acceptance and regulation by traditional financial institutions. As more ETFs like GDLC are approved, it's expected that the industry will continue to grow and mature, offering more investment opportunities for both institutions and individual investors.
- The approval of Grayscale's Digital Large Cap Fund (GDLC) as a spot exchange-traded fund (ETF) is expected to pave the way for increased regulation and mainstream acceptance of digital assets.
- The GDLC ETF will offer exposure to a variety of cryptocurrencies within a single structure, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA).
- Bloomberg analysts James Seyffart and Eric Balchunas predict a 95% probability of SEC approving spot ETFs for Litecoin (LTC), Solana (SOL), and XRP this year.
- The approved GDLC could serve as a low-risk "test run" for the SEC before considering other crypto assets, potentially leading to the approval of more altcoin ETFs in the future.
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