Grayscale's GDLC becomes the first US-approved spot ETF holding BTC, ETH, ADA, SOL, and XRP, signaling expanding crypto access.
The SEC plans a streamlined ETF approval process by removing the 19b-4 step, potentially accelerating crypto fund launches.
GDLC’s approval and proposed framework pave the way for multi-asset crypto ETFs, boosting institutional interest and market depth.
According to Coin Bureau, the U.S. Securities and Exchange Commission has approved the conversion of Grayscale’s Digital Large Cap Fund into an exchange-traded fund. GDLC’s ETF includes Bitcoin, Ethereum, Cardano, Solana, and XRP. The approval positions Grayscale as the first asset manager to offer a diversified spot crypto ETF beyond BTC and ETH. Additionally, the decision reflects growing regulatory comfort with exposure to digital assets.
The GDLC fund, which started in 2018, currently holds $775 million in assets. Approximately 91% of the holdings remain in BTC and ETH. However, the inclusion of ADA, SOL, and XRP signals deeper market integration. This also comes amid speculation of a Solana ETF launch within the week..
Besides GDLC’s approval, discussions between the SEC and major exchanges are accelerating. Regulators are considering a new framework that may eliminate the 19b-4 rule-change hurdle. Currently, crypto ETFs must go through a two-step approval process involving both an S-1 and 19b-4 filing. This process often causes delays, uncertainty, and additional scrutiny.
New Framework May Redefine ETF Launch Process
Under the proposed structure, ETF issuers could bypass the 19b-4 filing. Instead, they would submit an S-1 registration and wait 75 days. This streamlined path could reduce the launch time for compliant crypto ETFs. Exchanges would only list tokens that meet predefined asset-quality and surveillance standards.
Consequently, this regulatory evolution may benefit several issuers. Bitwise, for instance, filed to uplist its $1.3 billion Bitwise 10 Crypto Index Fund (BITW). Similarly, Hashdex seeks to expand its Nasdaq Crypto Index US ETF by adding seven new altcoins. Franklin Templeton also aims to convert its diversified trust into an ETF structure.
Broader ETF Access to Spark Institutional Inflows
Moreover, the SEC’s decision clears the way for more crypto basket funds. The Commission noted that NYSE Arca’s surveillance tools and GDLC’s portfolio quality meet anti-fraud standards under Section 6(b)(5). This development signifies a turning point for crypto ETF policy. It could attract fresh institutional capital and deepen market liquidity.
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