XRP News Today: SEC Decision on Grayscale ETF Could Spark Crypto Fund Surge

With a significant influx of capital into spot bitcoin and ether ETFs in recent weeks, the upcoming decision by the Securities and Exchange Commission (SEC) could catalyze the next wave of crypto fund launches.

While filings for single-asset ETFs have surged in recent months, products holding a basket of tokens are poised to receive regulatory approval next. The SEC is scheduled to rule on Grayscale Investments’ proposal to convert its Digital Large Cap Fund (GDLC) to an ETF by July 2.

GDLC, with approximately $730 million in assets under management, allocates over 90% of its assets to bitcoin and ether, with the remainder invested in XRP, solana (SOL), and cardano (ADA).

Bitwise, a rival fund manager, is also seeking to convert its BITW crypto index fund. Additionally, Hashdex aims to expand its Nasdaq Crypto Index US ETF (NCIQ), which currently holds only BTC and ETH.

According to analyst James Seyffart, the SEC could approve these products if the additional tokens represent a small portion of the index. Alternatively, the agency might opt to develop a comprehensive set of rules before making a decision.

“If they’re not approved on this first date, it’ll only be because the SEC isn’t ready with a full framework,” Seyffart said.

The SEC previously approved US spot bitcoin ETFs in January 2024, followed by ether ETFs in July of the same year.

Hashdex CIO Samir Kerbage argues that offering broader crypto market exposure presents a more significant opportunity. He envisions creating “the Nasdaq 100 for crypto,” suggesting that investing solely in bitcoin could be seen as shorting the broader crypto market.

Grayscale ETF head David LaValle recently expressed optimism about the launch of a multi-token offering, stating that Grayscale is in productive discussions with the NYSE and the SEC to bring such a product to market.

The SEC is also evaluating single-asset spot crypto ETFs focused on various tokens, including litecoin, solana, XRP, dogecoin, and cardano. The agency has requested amendments to S-1 forms from prospective Solana ETF issuers.

SEC commissioner Hester Peirce has urged patience regarding crypto-related progress, noting the need for efficient and comprehensive rule-making. She highlighted a comment letter from an exchange recommending “generic listing standards” for crypto ETFs.

Van Buren Capital general partner Scott Johnsson suggested that the SEC might adopt a general rule for the proposed crypto index products due to their more undefined universe of allocations. He believes that once basket products are approved, the application for single-asset spot products like SOL should be straightforward.