The U.S. Securities and Exchange Commission (SEC) has formally recognized a recent amendment to a proposal by Grayscale to convert its Digital Large Cap Fund into an exchange-traded fund (ETF).
The fund in question holds a basket of major cryptocurrencies, including XRP, Solana (SOL), and Cardano (ADA).
Grayscale initially filed to convert the multi-coin fund into an ETF last October.
As reported by U.Today, Bloomberg's ETF analysts previously opined that the product had the highest chance of being greenlit by the SEC.
According to prominent ETF analyst Nate Geraci, the SEC's deadline to rule on GDLC is this week, meaning that it will have to issue an order either approving or disapproving the product without kicking the can down the road.
The agency will reveal its verdict by July 2. Bloomberg's most recent odds show a 95% chance of such a product being approved by the SEC.
This would be the first spot-based US ETF that offers exposure to such altcoins as XRP and SOL. Of course, there are also standalone ETF products that are extremely likely to be approved by the SEC in 2025. There are single-asset applications from such players as Franklin Templeton, Bitwise, and 21Shares, but Fidelity and BlackRock are yet to jump into the race.
Of course, it should be noted that Grayscale's massive court victory over the SEC paved the way for the eventual approval of Bitcoin ETFs in early 2024. The SEC also went on to approve spot Ethereum ETFs last year.
Vladislav Sopov
U.Today Editorial Team