XRP News Today: SEC Approves Grayscale's Digital Large Cap Fund Conversion to ETF

The U.S. Securities and Exchange Commission (SEC) has approved the conversion of Grayscale's Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF). This decision marks a significant milestone for the crypto investment landscape, as the GDLC fund is designed to track a mix of five major crypto assets: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). The fund had nearly $762 million in assets under management as of June 27.

The approval comes after the SEC acknowledged Grayscale's revised S-3 filing on Monday, which proposed the conversion of the GDLC fund into a spot ETF. This development is part of a broader trend of increased activity in the crypto ETF space, with the SEC currently evaluating multiple spot crypto applications from major financial institutions. The filing represents Grayscale's latest effort to expand its crypto investment offerings beyond its flagship Bitcoin and Ethereum trust products.

The GDLC fund's composition includes a significant allocation to Bitcoin at 80.8%, with the remaining assets distributed among Ethereum (11.07%), XRP (4.63%), Solana (2.75%), and Cardano (0.75%). The approval of this conversion is expected to pave the way for single-asset spot ETFs tied to XRP, Solana, Cardano, and other cryptocurrencies, which are subject to a more extensive review timeline.

According to analysts, the amendment reflects the SEC's ongoing engagement with Grayscale regarding its proposed conversion of the GDLC fund. The approval is seen as a positive step forward for the crypto industry, as it demonstrates the SEC's willingness to consider and approve innovative investment products in the digital asset space. This decision could also encourage other financial institutions to explore similar offerings, further expanding the range of investment options available to investors.

The conversion of the GDLC fund into an ETF is expected to provide investors with greater liquidity and flexibility, as ETFs are typically more accessible and easier to trade than traditional investment funds. This development is likely to attract more institutional and retail investors to the crypto market, further driving its growth and adoption. The approval also underscores the growing acceptance of cryptocurrencies as a legitimate asset class, as regulatory bodies continue to develop frameworks for their oversight and integration into the broader financial system.