Securities Regulatory Commission Grants Approval for Grayscale ETF to Invest in XRP, Solana, and Cardano
The U.S. Securities and Exchange Commission (SEC) has given its approval for Grayscale's Digital Large Cap Fund (GDLC) to be transformed into an Exchange-Traded Fund (ETF), as announced on [date]. This decision comes as no surprise, given that Bitcoin and Ethereum account for 90% of the fund's assets.
The GDLC, which will trade as a full-fledged ETF on NYSE Arca, primarily focuses on Bitcoin but also includes Ethereum, Solana, XRP, and Cardano. According to the SEC filing, around 11% of the ETF's assets will be in Ethereum, with 2.8% in Solana, 4.8% in XRP, and 0.8% in Cardano.
This approval marks a significant step for Grayscale, as the company has previously converted its Bitcoin and Ethereum trusts into ETFs. However, it's worth noting that the SEC has shown receptiveness to funds that devote most of their funds toward established cryptocurrencies like Ethereum and Bitcoin, but has yet to approve ETF applications focusing solely on smaller altcoins.
The rapid approval of Grayscale's GDLC application by the SEC is noteworthy, as the regulator acted a day before its decision deadline, unlike previous instances where applications were rejected at the last minute. This quick approval could be a sign of the SEC's growing comfort with cryptocurrency-based ETFs.
As of the time of writing, the prices of the cryptocurrencies included in the GDLC are as follows:
- Bitcoin (BTC) is trading near $106,000, down 1.3% over the past 24 hours. - Ethereum (ETH) is hovering around $2,400, off 2.4% over the past 24 hours. - Solana (SOL) stands at $148, a 6% decrease over the past day. - XRP (XRP) is trading at $0.84, down 1.1% over the past 24 hours. - Cardano (ADA) is at $1.32, down 4.4% over the past 24 hours.
In a prediction made by Seyffart, a wave of new ETFs is expected in the second half of 2025, including assets like Tron, Dogecoin, Sui, Avalanche, Litecoin, and others. Whether these predictions come to fruition remains to be seen.
It's important to note that as closed-end funds, Grayscale's previous ETF products traded at a discount or premium relative to the value of their underlying holdings. This could potentially be a factor to consider for investors interested in the GDLC ETF.
This article was edited by James Rubin.
[1] Source: CoinDesk [3] Source: Grayscale SEC filing
- The U.S. Securities and Exchange Commission (SEC) has approved Grayscale's Digital Large Cap Fund (GDLC) to be transformed into an Exchange-Traded Fund (ETF), focusing primarily on Bitcoin and Ethereum, with other cryptocurrencies like Solana, XRP, and Cardano also included.
- According to the SEC filing, approximately 11% of the ETF's assets will be in Ethereum, making it the second-largest holding after Bitcoin.
- The crypto market is anticipating a wave of new ETFs in the second half of 2025, potentially including assets like Tron, Dogecoin, Sui, Avalanche, Litecoin, and others.
- Grayscale's GDLC ETF is set to trade as a full-fledged ETF on NYSE Arca, with Bitcoin currently trading near $106,000, Ethereum hovering around $2,400, Solana at $148, XRP at $0.84, and Cardano at $1.32.
- The SEC has shown receptiveness to funds that devote most of their funds toward established cryptocurrencies like Ethereum and Bitcoin, but has yet to approve ETF applications focusing solely on smaller altcoins.
- As closed-end funds, Grayscale's previous ETF products traded at a discount or premium relative to the value of their underlying holdings, which could potentially be a factor to consider for investors interested in the GDLC ETF.
- The rapid approval of Grayscale's GDLC application by the SEC could be a sign of the SEC's growing comfort with cryptocurrency-based ETFs, as the regulator acted a day before its decision deadline, unlike previous instances.
