Overview
- SEC Approval: The U.S. Securities and Exchange Commission (SEC) has approved Grayscale's application to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF).
- Fund Composition: The ETF is Bitcoin-centric but also includes Ethereum, Solana, XRP, and Cardano among its holdings.
- Market Impact: Analysts anticipate a surge in crypto-related ETF approvals in late 2025.
Fund Structure and Holdings
Grayscale’s GDLC ETF tracks the CoinDesk 5 Index, which aggregates the performance of the top five liquid digital assets:
| Asset | Allocation (%) |
|---|---|
| Bitcoin | 80+ |
| Ethereum | 11 |
| XRP | 4.8 |
| Solana | 2.8 |
| Cardano | 0.8 |
The SEC’s approval underscores its growing acceptance of diversified crypto ETFs, though it remains cautious about funds exclusively focused on altcoins.
Market Reaction and Price Trends
At the time of approval:
- Bitcoin: ~$106,000 (-1.3% daily)
- Ethereum: ~$2,400 (-2.4% daily)
- Solana: $148 (-6% daily)
- XRP: -1.1% daily
- Cardano: -4.4% daily
👉 Track real-time crypto prices for the latest updates.
Regulatory Shift and Future Outlook
The SEC’s decision marks a departure from its historical resistance to crypto ETFs. Key developments include:
- Timely Approval: The SEC greenlit GDLC a day before its deadline, contrasting past last-minute rejections.
- Legal Precedent: Grayscale’s 2023 lawsuit against the SEC set a precedent, leading to the eventual approval of spot Bitcoin ETFs in 2024.
Analysts predict a wave of new ETFs tied to Tron, Dogecoin, Avalanche, and other altcoins in late 2025.
FAQs
Why did the SEC approve Grayscale’s GDLC ETF?
The fund’s heavy weighting toward Bitcoin and Ethereum (90% combined) aligned with the SEC’s preference for established assets.
How does GDLC differ from Grayscale’s Bitcoin Trust?
GDLC is a multi-crypto ETF, while the Bitcoin Trust holds only BTC. ETFs also trade at net asset value (NAV), eliminating premiums/discounts common in closed-end funds.
What’s next for crypto ETFs?
Expect more filings for altcoin-focused ETFs, though the SEC may prioritize funds with Bitcoin or Ethereum as primary holdings.
👉 Explore crypto investment opportunities with regulated ETFs.
Conclusion
The SEC’s approval of Grayscale’s GDLC ETF signals growing institutional acceptance of diverse crypto exposure. While Bitcoin and Ethereum dominate, the inclusion of XRP, Solana, and Cardano offers investors broader market access. Stay tuned for further ETF innovations in 2025.