The U.S. Securities and Exchange Commission (SEC) is nearing its final decision on Grayscale Investments’ proposal to convert the $760 million Digital Large Cap Fund (GDLC)—holding Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—into a spot ETF. The statutory deadline is July 2, with industry experts predicting a high likelihood of approval.
👉 Why this ETF could revolutionize crypto investments
Key Details of the GDLC ETF Proposal
Portfolio Composition (as of June 27):
- Bitcoin: 80.8%
- Ethereum: 11.1%
- XRP, SOL, ADA: Combined 8.1%
- Regulatory Strategy: The low exposure (under 10%) to non-BTC/ETH assets minimizes regulatory concerns about liquidity or market manipulation.
- Precedent: Follows the SEC’s incremental approvals of spot Bitcoin ETFs (January 2024) and Ether ETFs (July 2024).
Why Approval Is Likely
- Sandbox Approach: GDLC serves as a low-risk testing ground for multi-asset crypto ETFs.
- SEC Engagement: Grayscale’s amended Form S-3 filing (June 26) signals active discussions with regulators.
- Industry Optimism: Analysts like Nate Geraci (ETF Store) and Bloomberg’s James Seyffart assign a 90%+ probability to altcoin ETF approvals.
"Approval would pave the way for standalone spot ETFs for XRP, SOL, and ADA later in 2025." — Nate Geraci
Implications of Approval
- First U.S. Spot ETF with regulated exposure to XRP, SOL, and ADA.
- Data Collection: SEC gains real-time surveillance data to inform future ETF decisions.
- Market Expansion: Could trigger broader institutional adoption of altcoins.
FAQs
Q: When will the SEC announce its decision?
A: The deadline is July 2, but updates could emerge earlier.
Q: What’s the difference between GDLC and a single-asset ETF?
A: GDLC is a multi-token fund, while single-asset ETFs (e.g., XRP-only) would require separate approvals.
Q: How will this affect XRP, SOL, and ADA prices?
A: Approval may boost short-term demand, but long-term trends depend on broader adoption.
👉 Discover how ETFs are reshaping crypto markets
Conclusion
The SEC’s decision this week could mark a turning point for altcoin ETFs, offering investors diversified crypto exposure and setting the stage for individual XRP, SOL, and ADA funds in 2025.
At press time, XRP traded at $2.18.
### SEO Keywords
- **XRP ETF**
- **SOL ETF**
- **Cardano ETF**
- **Grayscale GDLC**
- **SEC approval**
- **Crypto ETFs**
- **Multi-asset ETF**
- **Altcoin regulation**