XRP News Today: Grayscale's Digital Large Cap Fund Approved as Spot ETF by SEC

The U.S. Securities and Exchange Commission (SEC) has granted approval for Grayscale’s Digital Large Cap Fund (GDLC) to convert into a spot exchange-traded fund (ETF). This decision, made on an accelerated basis, marks a significant milestone in the cryptocurrency industry. The GDLC fund, which currently trades over the counter for accredited investors, holds a diversified portfolio of major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

The approval was anticipated, given that Bitcoin and Ethereum account for 90% of the fund’s assets. The remaining 10% is distributed among XRP, Solana, and Cardano, with each holding single-digit percentages. This regulatory green light is seen as a pivotal step toward the broader acceptance of cryptocurrencies in the traditional financial market, potentially unlocking new investment opportunities for institutional and retail investors alike.

The conversion of GDLC into a spot ETF is expected to pave the way for future altcoin ETFs, fostering optimism among industry experts. The approval of Grayscale’s GDLC would then be followed later by approval for individual spot ETFs on XRP, SOL, ADA, etc. This regulatory framework allows up to 15% of ETF holdings to be private assets, with some issuers finding creative ways to exceed this limit. Given that XRP, SOL, and ADA constitute less than 10% of the GDLC portfolio, excluding them would be inconsistent with the 1933 Securities Act. The GDLC's approval would serve as a low-risk "test run" for the SEC, potentially leading to the approval of individual spot ETFs for XRP, SOL, ADA, and other altcoins in the future.

This regulatory green light follows a series of pro-crypto developments in the United States. The embrace of the cryptocurrency industry by President Donald Trump has encouraged asset managers to file numerous altcoin ETF applications since early 2025. Firms such as WisdomTree, 21Shares, and VanEck have submitted standalone applications for XRP, SOL, and ADA ETFs. Grayscale itself has filed separate proposals to convert its XRP and SOL trusts into spot ETFs, a move that was previously considered unlikely to gain approval. In February, the SEC acknowledged Grayscale's Solana ETF proposal, marking a notable development in the regulatory landscape.

The approval of Grayscale's multi-asset crypto ETF is expected to boost institutional demand for such products. The ETF will allocate approximately 11% to Ethereum, 4.8% to XRP, 2.8% to Solana, and 0.8% to Cardano, providing diversified exposure to major cryptocurrencies. This development is seen as a pivotal step toward the broader acceptance of cryptocurrencies in the traditional financial market, potentially unlocking new investment opportunities for institutional and retail investors alike.