Huge Win for Crypto: SEC Approves Grayscale Index ETF Conversion — Clears XRP, Solana, and Cardano for Spot Trading
Big news is shaking up the crypto space—and this time, it’s not just hype. The SEC just approved Grayscale’s conversion of its Digital Large Cap Fund into a full-fledged ETF, unlocking new potential for mainstream crypto investing.
What Just Happened?
On July 1st, the Securities and Exchange Commission (SEC) gave the green light for Grayscale’s Digital Large Cap Fund (GDLC) to convert into an exchange-traded fund (ETF). This isn’t just another crypto ETF. This is a major index product that covers five of the largest cryptocurrencies by market cap:
Bitcoin (BTC) – 80% portfolio weight
Ethereum (ETH) – 11%
XRP – 4.8%
Solana (SOL) – 2.8%
Cardano (ADA) – 0.8%
Why This ETF Matters
This isn’t Grayscale’s first rodeo. The Digital Large Cap Fund has been active since 2018 and trading OTC under the ticker GDLC since 2019. Now, with this ETF conversion, it’s set to begin trading on NYSE Arca, offering:
Continuous daily trading
Creation/redemption of shares
Broader retail and institutional access
Grayscale’s product had $775 million in AUM as of June 30—so this isn’t a side project. This is a massive leap for crypto accessibility.
Spot Trading Cleared for SOL, ADA, and XRP
Here’s where it gets really exciting: This approval implicitly clears Solana (SOL), XRP, and Cardano (ADA) for spot ETF exposure in the U.S. That’s a game-changer.
And the timing couldn’t be better—rumors are swirling that the first spot Solana ETF could go live this week.
Major altcoins are finally stepping out of Bitcoin and Ethereum’s shadow on Wall Street.
What It Means for the Crypto Market
The SEC’s approval cited that the exchange’s surveillance-sharing agreements and asset-quality standards meet the bar to prevent fraud and manipulation. That’s Section 6(b)(5) compliance in action—and it paves the way for more.
This opens the floodgates for crypto index ETFs, especially diversified products that offer exposure beyond the top 2.
What’s Coming Next?
Several firms are already lining up:
Bitwise has filed to uplist its $1.3B Bitwise 10 Crypto Index Fund (BITW) into an ETF.
Hashdex is seeking to expand its Nasdaq Crypto Index US ETF with seven additional altcoins.
Franklin Templeton has filed to launch its own crypto index ETF, preparing to shift its current crypto baskets into an ETF structure.
📈The Takeaway
The approval of Grayscale’s ETF conversion isn’t just a regulatory win—it’s a market signal. It shows that:
Crypto index products are maturing
Regulatory confidence is rising
Spot exposure is expanding beyond BTC and ETH
If you’re a crypto investor, diversification just became a whole lot easier—and more legitimate in the eyes of traditional finance.
Ready for more ETF approvals this summer? Keep an eye on the SEC, because crypto is about to get a lot more Wall Street-friendly.
