SEC Approves Grayscale’s Conversion of Multi-Crypto Fund into Spot ETF

·

The U.S. Securities and Exchange Commission (SEC) has officially greenlit the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF), marking a pivotal advancement in the evolution of regulated cryptocurrency investment vehicles. This decision, announced in an SEC filing on July 1, 2025, allows the fund to begin trading on NYSE Arca and reflects growing regulatory confidence in digital asset products.

The newly approved spot ETF will track a diversified basket of leading cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA)—with BTC and ETH making up over 90% of the portfolio. This approval not only expands investor access to crypto through traditional markets but also signals a broader shift toward institutional acceptance of digital assets.

Grayscale’s Multi-Asset ETF Gains Regulatory Approval

Grayscale’s Digital Large Cap Fund conversion represents one of the first multi-cryptocurrency spot ETFs approved by the SEC. Unlike single-asset ETFs such as the spot Bitcoin and Ethereum ETFs approved in 2024, this product offers exposure to a curated selection of top-tier digital assets, providing investors with diversified market access in a single instrument.

The fund’s composition is weighted as follows:

This structure mirrors the existing holdings of the pre-conversion GDLC, maintaining continuity while enhancing liquidity and transparency through ETF mechanics. The approval came ahead of the final decision deadline of July 2, 2025, suggesting that the SEC has refined its evaluation process for crypto-based financial products.

👉 Discover how diversified crypto ETFs are reshaping investment strategies in 2025.

Grayscale first filed for the ETF conversion on April 1, 2025, proposing a structure that would provide direct, transparent exposure to these underlying assets. After incorporating regulatory feedback, the firm submitted an amended application on June 30, 2025—just days before the final review date. The swift approval underscores increasing alignment between crypto innovators and regulators.

Why This Approval Matters for Crypto Investors

The SEC’s nod to a multi-asset spot crypto ETF is more than just a procedural milestone—it's a signal of maturing market infrastructure. For retail and institutional investors alike, this development offers several key benefits:

Moreover, this approval may set a precedent for future filings involving other altcoins, including staking-enabled assets like Solana and Cardano. While current regulations limit staking rewards within ETFs, industry experts believe hybrid models could emerge soon.

Industry Experts Forecast Wave of New Crypto ETF Approvals

Analysts predict that Grayscale’s approval is just the beginning of a broader wave of crypto ETF authorizations. Bloomberg Intelligence’s James Seyffart noted, “Approval was our expectation. The fund is over 90% Bitcoin and Ethereum. The next big date is Bitwise’s BITW deadline of July 31.” He added that the SEC could act earlier than expected, especially given recent trends.

Eric Balchunas, another prominent ETF analyst at Bloomberg, highlighted upcoming filings from REX and Osprey Funds for a staked Solana (SOL) ETF. If approved, this would become the first yield-generating crypto ETF in the U.S., introducing staking rewards into a regulated framework.

Despite past delays on standalone XRP and Solana spot ETF applications, the regulatory landscape appears to be shifting positively. The SEC’s consistent pattern of approvals—first Bitcoin, then Ethereum, now a blended basket—suggests a methodical expansion of acceptable digital assets.

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 provides direct exposure to price movements of the underlying assets.

Q: How is this different from Bitcoin or Ethereum-only ETFs?
A: Unlike single-asset ETFs, Grayscale’s new product includes multiple major cryptocurrencies in one fund, offering instant diversification across top-tier digital assets.

Q: Can I earn staking rewards through this ETF?
A: No—this is a standard spot ETF without staking functionality. However, upcoming products like the proposed staked Solana ETF may offer yield features.

Q: Is XRP included in other approved ETFs?
A: Not yet. This is currently the only SEC-approved ETF that includes XRP as part of its holdings.

Q: When will the ETF start trading?
A: The fund is expected to begin trading shortly after July 1, 2025, pending final listing procedures on NYSE Arca.

Q: Does this mean all major cryptos will get ETFs soon?
A: While not guaranteed, the trend suggests increasing openness from regulators. Assets with strong liquidity, clear use cases, and established networks—like SOL, ADA, and LINK—are potential candidates.

👉 Explore how next-generation crypto ETFs could unlock new investment opportunities.

Core Keywords Driving Market Interest

This landmark decision aligns with rising demand for accessible, compliant crypto investment options. Key search terms reflecting user intent include:

These keywords naturally reflect both investor curiosity and regulatory significance, making them essential for SEO visibility around this event.

As the crypto ecosystem integrates further with traditional finance, products like Grayscale’s multi-asset spot ETF serve as critical bridges—offering security, transparency, and ease of access. With more applications in the pipeline and growing analyst confidence, 2025 is shaping up to be a transformative year for digital asset adoption.

👉 Stay ahead of the curve—see how institutional crypto adoption is accelerating in real time.