Potential Approval of Ripple-Focused ETF on the Horizon Following SEC's Green Light for Grayscale's Multi-Cryptocurrency ETF
In a significant move for the crypto industry, the U.S. Securities and Exchange Commission (SEC) has approved Grayscale Investments' application to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). The GDLC fund will become a publicly traded ETF offering exposure to several crypto assets within a single structure.
The GDLC fund, which is modeled on the CoinDesk 5 Index, includes a mix of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). This development marks one of the first regulated products tracking several digital assets.
The green light for GDLC has seen optimism grow among investors who view it as a positive signal for potential future approval of altcoin-specific ETFs. Nate Geraci, an investment advisor, even suggested that the GDLC fund could be seen as a low-risk "test run" for the SEC before it gradually starts considering other crypto assets.
The inclusion of various crypto assets in GDLC's structure has fueled optimism for potential future approval of altcoin-specific ETFs. Geraci wrote that the move could potentially lead to the approval of individual spot ETFs for XRP, SOL, ADA, and others in the future.
The current probability for SEC approval of spot ETFs for Litecoin (LTC), Solana (SOL), and XRP in 2025 is estimated at 95% according to analysts James Seyffart and Eric Balchunas. This probability reflects an increase from an earlier 90% estimate. The analysts expect a wave of new ETF approvals in the second half of 2025, with final SEC decisions for these altcoin spot ETFs due by October.
Canadian financial authorities have already approved a couple of spot ETFs tracking XRP, namely 3iQ's XRPQ and Purpose Investment's XRPP. As GDLC starts trading as a converted ETF, it will join Grayscale's existing lineup of converted products following the approval of the firm's Bitcoin Trust ETF (GBTC) in January 2021.
Trading for the converted ETF is expected to begin shortly, pending final operational readiness and exchange coordination with NYSE Arca. The SEC's decision to approve the GDLC fund comes amid a broader optimistic outlook for altcoin ETFs this year, despite occasional regulatory delays such as the SEC's pause on Grayscale’s Digital Large Cap Fund conversion.
Balchunas suggests the SEC might soon adopt a standardized listing framework for crypto ETFs, potentially streamlining approvals for many top tokens. Therefore, as of mid-2025, Seyffart and Balchunas strongly believe that the approval of spot ETFs for LTC, SOL, and XRP is very likely within the year, at a confidence level of about 95%.
| Cryptocurrency | Probability of SEC Spot ETF Approval in 2025 | |----------------|---------------------------------------------| | Solana (SOL) | 95% | | Litecoin (LTC) | 95% | | XRP | 95% |
[1] Seyffart, J., & Balchunas, E. (2025). Analysis: 95% probability of SEC approving altcoin ETFs in 2025. CoinDesk. [2] Seyffart, J., & Balchunas, E. (2025). SEC may adopt standardized listing framework for crypto ETFs, streamlining approvals. CoinDesk. [3] Seyffart, J., & Balchunas, E. (2025). GDLC approval a positive signal for altcoin ETFs, analysts say. CoinDesk.
- The Grayscale Digital Large Cap Fund (GDLC) includes a mix of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA), making it one of the first regulated products tracking several digital assets.
- Investment advisor Nate Geraci suggests that the GDLC fund could be seen as a low-risk "test run" for the SEC before it gradually starts considering other crypto assets.
- Analysts James Seyffart and Eric Balchunas estimate the current probability for SEC approval of spot ETFs for Litecoin (LTC), Solana (SOL), and XRP in 2025 at 95%.
- Balchunas suggests the SEC might soon adopt a standardized listing framework for crypto ETFs, potentially streamlining approvals for many top tokens like Litecoin (LTC), Solana (SOL), and XRP.
