SEC Approves Grayscale’s Conversion of BTC, ETH, SOL, and XRP Fund into Spot ETF

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The U.S. Securities and Exchange Commission (SEC) has officially approved Grayscale’s application to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This landmark decision marks a pivotal advancement in the regulatory acceptance of cryptocurrency-based financial products and opens new doors for mainstream investor access.

The newly approved ETF will offer exposure to a diversified basket of leading digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA)—reflecting the current holdings of the GDLC. With Bitcoin and Ethereum comprising over 90% of the portfolio, the fund aligns closely with market demand for regulated, multi-asset crypto investment vehicles.

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A Milestone in Crypto Regulation

Announced on July 1, 2025, the SEC’s approval signals growing institutional confidence in digital assets and reflects a shift toward clearer regulatory pathways for spot crypto ETFs. The decision was published in an official filing, confirming that the fund meets all necessary compliance requirements for listing and trading on NYSE Arca.

Grayscale initially filed for the conversion on April 1, 2025, proposing a structure that would grant investors direct ownership in underlying cryptocurrencies—distinct from futures-based or synthetic products. After submitting a revised application on June 30, 2025, in response to regulatory feedback, the final decision was expected by July 2. However, the approval came slightly ahead of schedule, suggesting a more streamlined review process by the SEC.

This development builds upon previous milestones, including the SEC’s 2024 greenlighting of spot Bitcoin and Ethereum ETFs. By expanding the ecosystem to include multi-asset funds like GDLC, regulators are acknowledging both investor demand and the maturing infrastructure of the digital asset market.

“Approval was our expectation. The fund is over 90% Bitcoin and Ethereum. The next key date is Bitwise’s BITW deadline on July 31,” said James Seyffart, Bloomberg ETF analyst. “But clearly, the SEC can move early.”

Portfolio Composition and Market Impact

The approved ETF will mirror the existing weightings of Grayscale’s Digital Large Cap Fund:

This allocation provides balanced exposure to top-tier blockchains while maintaining a strong emphasis on the two largest cryptocurrencies by market capitalization. For investors seeking diversified yet focused crypto exposure without managing individual wallets or exchanges, this ETF presents a compelling option.

Bitcoin continues to dominate the fund’s composition, reinforcing its status as the cornerstone of institutional crypto investment strategies. Meanwhile, inclusion of XRP and Solana highlights increasing recognition of high-performance networks beyond the top two.

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Industry Experts Predict Wave of New Crypto ETF Approvals

Analysts believe this approval is not an isolated event but part of a broader trend toward wider adoption of spot crypto ETFs in the United States.

Eric Balchunas, senior ETF analyst at Bloomberg, noted that the lack of further comment from the SEC on pending applications—such as those from REX and Osprey Funds for a staking-enabled Solana ETF—could indicate imminent approvals. A staking-based SOL ETF, expected to launch around July 3, would be the first of its kind in the U.S., offering yield-generating capabilities through on-chain participation.

The GDLC conversion sets a precedent for other diversified crypto funds seeking ETF status. With clear frameworks now emerging, firms may accelerate filings for similar products covering altcoins, DeFi tokens, or even sector-specific baskets like AI-driven blockchains or real-world asset tokenization platforms.

Moreover, the SEC’s recent delays on standalone XRP and Solana ETF decisions may no longer signal rejection but rather procedural caution amid rapid market evolution. These pauses could be strategic, allowing time for risk assessment while avoiding regulatory overreach.

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Frequently Asked Questions (FAQ)

Q: What is a spot crypto ETF?
A: A spot crypto ETF holds actual cryptocurrencies rather than futures contracts or derivatives. It allows investors to gain exposure to price movements of digital assets like Bitcoin and Ethereum through traditional brokerage accounts.

Q: Why is the SEC’s approval of Grayscale’s fund significant?
A: This approval expands access to multiple major cryptocurrencies under one regulated product. It demonstrates regulatory progress beyond single-asset ETFs and supports broader integration of digital assets into mainstream finance.

Q: Does this ETF include staking rewards?
A: No, this particular ETF does not offer staking rewards. However, upcoming products—such as proposed Solana staking ETFs from Osprey and REX—may introduce yield-generating features in the near future.

Q: Can international investors buy this ETF?
A: Yes, depending on local regulations and brokerage offerings. U.S.-listed ETFs are often accessible globally through platforms that support American equities trading.

Q: How does this affect the price of XRP, Solana, or Cardano?
A: While direct impact varies, ETF inclusion typically increases visibility and institutional demand for underlying assets. Greater liquidity and legitimacy may contribute to long-term price stability and growth potential.

Q: Is this the first multi-crypto spot ETF?
A: Yes, Grayscale’s converted GDLC is among the first U.S.-approved spot ETFs to hold a diversified basket of major cryptocurrencies, setting a benchmark for future composite digital asset funds.

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Looking Ahead: The Future of Crypto Investment Products

With Grayscale’s success paving the way, the U.S. financial landscape is poised for deeper integration of digital assets. Regulators appear to be adopting a more predictable and transparent approach, reducing uncertainty for issuers and investors alike.

Future developments may include:

As investor interest grows and infrastructure strengthens, spot ETFs are becoming central to how people access blockchain-based value systems. The SEC’s latest move isn’t just about one fund—it’s about building a sustainable framework for innovation within regulated markets.

In conclusion, Grayscale’s milestone reflects a maturing ecosystem where technology, finance, and regulation converge. For everyday investors and institutions alike, this approval unlocks simpler, safer pathways to participate in the future of money.