Crypto ETFs Gain Ground as Grayscale's GDLC Wins SEC Approval
SEC approves Grayscale's spot ETF with XRP, Solana, Cardano; altcoin ETF prospects brighten.
In a major step for cryptocurrency integration into mainstream finance, the U.S. Securities and Exchange Commission (SEC) has granted accelerated approval for Grayscale Investments to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This marks a key regulatory milestone, especially for altcoins such as XRP, Solana (SOL), and Cardano (ADA), which are included in the fund.
The SEC announced the decision through a formal filing, approving Grayscale’s proposed rule change to list the spot ETF on NYSE Arca. The approval comes as little surprise given that over 90% of GDLC's holdings are in Bitcoin (BTC) and Ethereum (ETH), the two most established digital assets.
ETF analyst James Seyffart noted that the fund’s composition—roughly 80% Bitcoin and 11% Ethereum—played a significant role in fast-tracking the decision. The remaining share includes a modest allocation to Solana, Cardano, and XRP, signaling growing institutional openness to a broader set of crypto assets.
Grayscale’s move to convert GDLC from an over-the-counter product for accredited investors into a publicly traded ETF not only legitimizes its portfolio of digital assets but also sets a precedent for altcoin exposure in regulated financial instruments.
This regulatory green light arrives amid an increasingly favorable environment for crypto under the administration of President Donald Trump, who returned to office in January. With this shift, the SEC is now reviewing several applications for crypto ETFs tied to assets beyond Bitcoin and Ethereum—including XRP, Solana, and even meme coins like Dogecoin.
According to Nate Geraci, president of the ETF Store, the GDLC approval could pave the way for standalone spot ETFs focused on altcoins. "A side benefit for the SEC in approving GDLC is that it provides a test run for additional crypto assets in ETF wrappers," Geraci explained, adding that XRP, SOL, and ADA collectively make up less than 10% of the fund’s total holdings.
Meanwhile, the launch of the REX Osprey Solana Staking ETF—the first of its kind in the U.S.—signals mounting momentum for staking-based financial products. Top Wall Street analysts are now projecting a 95% probability that spot ETFs for SOL, XRP, and Litecoin (LTC) will be approved before the end of the year.
The SEC’s green light for GDLC suggests a shift in its stance toward altcoin-based financial products. As institutional investors gain access to a wider range of crypto ETFs, the door opens to deeper market participation and broader adoption of blockchain assets.
