SEC Approves Grayscale Multi-Cryptocurrency ETF Including Bitcoin, Ethereum, and XRP

The U.S. Securities and Exchange Commission has officially approved Grayscale's groundbreaking proposal to convert its Digital Large Cap Fund into a spot exchange-traded fund. This historic decision creates a new investment vehicle that combines Bitcoin, Ethereum, XRP, Solana, and Cardano under one regulated fund for American investors.

Grayscale Digital Large Cap Fund ETF Composition and Holdings

The newly approved Grayscale GDLC ETF maintains a diversified cryptocurrency portfolio with strategic allocations across major digital assets. Bitcoin dominates the fund with over 80% of total holdings, reflecting its position as the leading cryptocurrency by market capitalization.

Ethereum holds the second-largest allocation at 11% of the fund, followed by XRP at 4.8%, Solana at 2.8%, and Cardano at 0.8%. This composition provides investors with exposure to the top-performing cryptocurrencies while maintaining Bitcoin as the primary investment focus.

The approval represents a significant milestone for multi-asset cryptocurrency ETFs in the United States. Bloomberg ETF analyst James Seyffart noted that the approval of GDLC as a spot ETF could pave the way for future multi-asset crypto ETFs, signaling growing regulatory acceptance.

SEC Regulatory Momentum Drives Crypto ETF Approvals

This approval builds upon Grayscale's previous regulatory victories, particularly the successful conversion of its Bitcoin Trust into a spot Bitcoin ETF in 2024. The legal precedent established by that conversion has influenced the SEC's more favorable stance toward similar cryptocurrency investment products.

The approval followed an amended S-3 filing, demonstrating active collaboration between Grayscale and SEC regulators. ETF Store President Nate Geraci had predicted the successful outcome due to strong regulatory momentum favoring cryptocurrency ETFs.

Streamlined Crypto ETF Approval Process Under Consideration

Simultaneously, the SEC is evaluating significant procedural changes that could revolutionize cryptocurrency ETF approvals. The commission is considering eliminating the requirement for 19b-4 filings, which currently mandate lengthy approval processes for new exchange-traded products.

This potential regulatory shift would dramatically streamline the approval timeline for crypto-based ETFs, enabling fund managers to bring new products to market within approximately 75 days rather than the current extended timeframe.

The proposed changes represent broader discussions between the SEC and major exchanges to establish standardized listing procedures for cryptocurrency ETFs. Success in implementing these changes could accelerate the development and approval of innovative crypto investment products.

Market Impact and Future Cryptocurrency ETF Prospects

The Grayscale GDLC approval sets the stage for additional cryptocurrency ETF approvals in the coming months. The SEC is currently reviewing several single-token ETF proposals tracking Solana and XRP, with Bloomberg analysts estimating approval probabilities as high as 95% by the end of 2025.

This regulatory progression could trigger increased mainstream adoption of cryptocurrency investment products. As more crypto ETFs receive regulatory approval, institutional and retail investor confidence is expected to grow, potentially driving significant capital flows into the cryptocurrency sector.

The approval of multi-asset cryptocurrency ETFs like Grayscale's GDLC represents a crucial step toward mainstream cryptocurrency adoption. By providing regulated access to diversified cryptocurrency exposure, these products bridge the gap between traditional investment vehicles and digital asset innovation.

Investment Implications for Cryptocurrency ETF Market

The Grayscale Digital Large Cap Fund ETF approval demonstrates the SEC's evolving approach to cryptocurrency regulation. This shift from restrictive oversight to selective approval of well-structured crypto investment products reflects growing recognition of cryptocurrency's role in modern investment portfolios.

For investors, the approved ETF offers regulated exposure to multiple major cryptocurrencies without the complexities of direct cryptocurrency ownership. The fund structure provides professional management, regulatory oversight, and simplified tax reporting compared to individual cryptocurrency holdings.

The success of this multi-asset cryptocurrency ETF approval likely encourages other fund managers to develop similar products. This competitive environment could lead to innovative cryptocurrency investment strategies and improved fee structures for investors seeking diversified digital asset exposure.