XRP News Today: SEC Poised to Approve Grayscale’s $760 Million Multi-Asset Crypto ETF

The U.S. Securities and Exchange Commission (SEC) is poised to make a pivotal decision this week regarding Grayscale Investments’ proposal to convert its $760 million Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This move could potentially offer U.S. investors their first regulated exposure to XRP, Solana, and Cardano.

According to Nate Geraci, president of The ETF Store, there is a high likelihood that the SEC will approve the conversion. The SEC’s July 2 deadline for reviewing Grayscale’s amended Form S-3 filing places the decision in its final stretch. Currently, GDLC holds 80.8% Bitcoin and 11.1% Ethereum, with XRP, Solana, and Cardano together comprising just 8.1% of the fund. Geraci believes that the relatively small allocation to altcoins positions GDLC as a “low-risk sandbox” for the SEC to test multi-asset crypto ETFs without overexposing investors to perceived volatility or liquidity concerns.

This structure aligns with the Commission’s incremental approach to crypto regulation. After a U.S. court ruled against the SEC’s prior denial, spot Bitcoin ETFs were approved in January 2024. Spot Ethereum ETFs followed seven months later. Now, experts believe that Grayscale’s GDLC—containing only modest exposure to other digital assets—offers a logical next step in that progression.

The SEC’s approval of similar portfolio diversification in traditional finance adds further weight to the argument. Since February, the agency has permitted up to 15% exposure to illiquid private-credit instruments within ETFs, provided proper risk management frameworks are in place. Geraci argued there is “no reason to not allow 10% weighting to crypto assets besides already-approved BTC & ETH,” calling the current inconsistency “incongruent.”

Grayscale’s recent filing updates on June 26 signal active regulatory engagement, including revised disclosures on custody, index methodology, and fund mechanics. Bloomberg Intelligence analysts James Seyffart and Eric Balchunas echoed Geraci’s optimism, raising their approval probability for GDLC to 90%. Seyffart added that a denial would require the SEC to either draft an entirely new crypto ETF framework or justify why an 8% non-BTC/ETH exposure constitutes an unacceptable risk.

If approved, GDLC would be the first U.S. spot ETF to offer direct, regulated exposure to XRP, Solana, and Cardano. Beyond its immediate impact, such approval would also give the SEC access to real-time trading and redemption data, paving the way for individual spot ETFs for these altcoins in 2025.

Investors and market watchers alike now await a final decision, expected by the close of business Wednesday. The potential approval of a multi-asset ETF encompassing XRP, Solana, and Cardano would mark a significant milestone for the cryptocurrency industry. Such an ETF would provide investors with a diversified exposure to these three prominent digital assets, which have shown strong performance and potential for growth. The inclusion of these cryptocurrencies in an ETF would also lend them greater legitimacy and accessibility, potentially attracting a broader range of investors, including those who may have been hesitant to enter the crypto market due to its volatility and regulatory uncertainties.

However, it is important to note that the approval of a multi-asset ETF is not guaranteed, and there are still regulatory hurdles that need to be overcome. The SEC has been cautious in its approach to approving cryptocurrency ETFs, citing concerns over market manipulation and investor protection. Nevertheless, the expert's prediction suggests that the regulatory environment may be shifting in favor of greater acceptance of cryptocurrencies, which could pave the way for the approval of more ETFs in the future.