XRP News Today: SEC Recognizes Grayscale’s Spot ETF Proposal for Top Cryptocurrencies

The Securities and Exchange Commission (SEC) has formally recognized Grayscale’s revised application to transform its Digital Large Cap Fund into a spot ETF. This fund includes several prominent cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Ripple’s XRP, Solana (SOL), and Cardano (ADA).

Currently, the fund is exclusively available in private markets. However, if approved as an ETF, it would be listed on major stock exchanges, making it more accessible for regular investors to buy and trade a diversified mix of top cryptocurrencies in a single investment vehicle.

The SEC has previously approved Grayscale’s Bitcoin futures ETF. Additionally, the SEC permitted the conversion of Grayscale’s Bitcoin Trust (GBTC) into a spot Bitcoin ETF in January 2024, following a legal victory by Grayscale against the SEC.

Grayscale has recently proposed a new ETF for Cardano (ADA), named the Grayscale Cardano Trust (GADA). Unlike its other ETFs, which convert existing trusts, this one is an entirely new product. However, the SEC has delayed its decision on two of Grayscale’s other proposals: the Avalanche (AVAX) and Cardano (ADA) spot ETFs.

The SEC has acknowledged Grayscale's amended proposal to convert its Digital Large Cap Fund (GDLC) into a spot ETF that would hold Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). The SEC has until July 2 to make a final decision on this proposal. The GDLC fund is designed to track a mix of these five major crypto assets, with the majority allocated to Bitcoin (80.8%) and the remainder distributed among Ethereum (11.07%), XRP (4.63%), Solana (2.75%), and Cardano (0.75%).

The acknowledgment by the SEC comes at a time of heightened activity in the crypto ETF space, with the regulatory body currently evaluating multiple spot crypto applications from various financial institutions. This filing represents Grayscale's latest effort to expand its crypto investment offerings beyond its flagship Bitcoin and Ethereum trust products. The amended S-3 filing to convert GDLC into a spot ETF was acknowledged by the SEC, reflecting the SEC’s ongoing engagement with Grayscale regarding its proposed conversion of the GDLC fund.

According to an analyst, the amendment indicates a strong likelihood that the SEC will approve the application. If the GDLC is approved, it could set a precedent for the approval of single-asset spot ETFs tied to XRP, Solana, Cardano, and other cryptocurrencies, which are subject to a more extensive review timeline. The approval of the GDLC spot ETF would mark a significant milestone in the crypto investment landscape, potentially opening the door for more diverse and accessible investment options in the digital asset space.