The U.S. Securities and Exchange Commission (SEC) is approaching a pivotal moment in the evolution of cryptocurrency investment products. With a statutory decision deadline set for July 2, regulators are in the final stretch of reviewing Grayscale Investments’ proposal to convert its $760 million Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This fund includes major digital assets such as Bitcoin, Ethereum, XRP, Solana (SOL), and Cardano (ADA). Market observers are increasingly confident that approval is imminent.
Nate Geraci, president of ETF Store, recently signaled a “high likelihood” of approval, noting on social platform X that such a decision could pave the way for individual spot ETFs for XRP, SOL, and ADA in the near future. His assessment reflects growing optimism among industry experts about the SEC’s willingness to expand regulated crypto access.
Why the Multi-Asset ETF Could Be Approved
A key factor supporting approval lies in the composition of the GDLC. As of June 27, the fund holds 80.8% Bitcoin and 11.1% Ethereum, with XRP, Solana, and Cardano collectively making up just 8.1%. This limited exposure to non-BTC and non-ETH assets positions the fund as a low-risk regulatory test case.
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Geraci emphasized that the sub-10% weighting of XRP, SOL, and ADA reduces concerns about market manipulation or liquidity issues—common regulatory hurdles in past rejections. He described the structure as an “easy way to slowly step into other assets,” effectively allowing the SEC to monitor market behavior without full-scale exposure.
This incremental approach mirrors the agency’s prior actions. Spot Bitcoin ETFs were approved in January 2024 following court pressure over inconsistent rulings, and spot Ethereum ETFs followed seven months later. Approving a multi-asset fund with minimal altcoin exposure aligns with this measured progression.
Regulatory Precedents and Policy Consistency
The SEC has already demonstrated flexibility in asset composition standards. Since February 2025, it has allowed up to 15% of certain ETF portfolios to include illiquid private-credit instruments—provided sponsors implement strong valuation and liquidity controls. Geraci argues there’s no logical reason to treat crypto assets differently, especially when their combined weight in GDLC is below that threshold.
“It’s incongruent,” he stated, “to permit 15% in private credit but block 10% in established digital assets like XRP, SOL, and ADA.” This inconsistency could become harder to justify if the SEC denies GDLC’s conversion without clear reasoning.
Moreover, recent filings suggest active regulatory engagement. On June 26, Grayscale submitted an amended Form S-3 for GDLC—a move widely interpreted as a sign of ongoing dialogue with the SEC. The updated registration includes revisions to custody protocols, creation-unit size, and index methodology, all of which typically result from staff feedback during review cycles.
Analyst Confidence Grows
External analysts echo Geraci’s positive outlook. James Seyffart of Bloomberg Intelligence told Blockworks that the small allocation to non-BTC/ETH assets makes GDLC a low-stakes approval for the SEC. Denying it, he argued, would force the agency to either create an entirely new crypto-ETF framework on short notice or justify why an 8% altcoin exposure poses unacceptable risk—neither of which appears politically or practically viable.
Seyffart and colleague Eric Balchunas have since raised their estimated approval probability for single-asset altcoin ETFs to 90%. They cite “remarkably positive” communication between regulators and issuers as evidence of shifting sentiment.
“If GDLC gets approved,” Seyffart noted, “it becomes a data-generating mechanism for the SEC.” Real-time insights into trading volumes, fund flows, and redemption activity would provide empirical support for future standalone ETF applications.
Implications for XRP, SOL, and ADA
Approval of the GDLC conversion would mark a historic milestone: it would be the first U.S.-listed spot ETF offering regulated exposure to XRP, Solana, and Cardano. While investor access would initially be indirect and proportionally small, the symbolic and structural significance cannot be overstated.
More importantly, success here could accelerate the path toward dedicated spot ETFs for these assets later in 2025. Each additional data point from a live multi-asset product strengthens the case for individual funds.
At press time, XRP was trading at $2.18, reflecting steady market confidence amid evolving regulatory clarity.
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Frequently Asked Questions (FAQ)
Q: What is the GDLC ETF?
A: The Grayscale Digital Large Cap Fund (GDLC) is a proposed spot ETF aiming to track a basket of leading cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, and Cardano. Its conversion from a private trust to a publicly traded ETF is currently under SEC review.
Q: Why is the SEC more likely to approve a multi-asset ETF than individual altcoin ETFs?
A: Because XRP, SOL, and ADA make up less than 10% of GDLC’s holdings, the fund presents lower regulatory risk. It allows the SEC to observe market dynamics without committing to full approval of standalone altcoin products.
Q: What happens if GDLC is approved?
A: Investors gain regulated exposure to multiple major cryptos through a single ETF. The SEC also gains real-time market data that could support future approvals of individual spot ETFs for XRP, SOL, and ADA.
Q: When will we know if GDLC is approved?
A: The SEC’s statutory deadline for a decision is July 2. A determination is expected by the close of business that day.
Q: Could this lead to more crypto ETFs in 2025?
A: Yes. Analysts believe GDLC approval would establish a precedent and provide critical data, increasing the likelihood of spot ETFs for other major altcoins later this year.
Q: Is this related to Bitcoin or Ethereum ETFs?
A: While separate products, GDLC builds on the regulatory momentum created by spot Bitcoin and Ethereum ETF approvals in 2024. It represents the next phase in expanding regulated crypto investment options.
Final Outlook
The potential approval of Grayscale’s multi-asset ETF marks a strategic inflection point in U.S. crypto policy. By leveraging a diversified structure with minimal altcoin exposure, GDLC offers a pragmatic pathway for regulators to expand market access while maintaining oversight.
With strong analyst support, recent regulatory signals, and mounting institutional demand, the odds favor a favorable outcome this week. Regardless of Wednesday’s decision, one trend is clear: the era of altcoin ETFs is drawing closer.
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