This week, the U.S. Securities and Exchange Commission (SEC) is expected to make a decision on the Grayscale Digital Large Cap Fund, and experts believe that approval is nearly guaranteed.
Overview of Grayscale Digital Large Cap Fund
The Grayscale Digital Large Cap Fund (GDLC) is a diversified trust that holds Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Approval to convert GDLC into an ETF would represent the SEC's first endorsement for a U.S. product holding these specific altcoins within an ETF Wrapper. Expert Nate Geraci, president of ETF Store, predicted a 'high likelihood' of approval.
Trends in Crypto Regulation
The anticipated decision by the SEC follows a broader trend of renewed interest in the crypto industry in the United States. President Donald Trump’s endorsement of the sector has led to a surge in altcoin ETF filings since early 2025, including standalone applications for XRP, SOL, and ADA from firms like WisdomTree, 21Shares, and VanEck. Grayscale itself has filed separate proposals to convert its XRP and SOL trusts into ETFs.
Speculations on Future Altcoin ETFs
Geraci emphasized that excluding XRP, SOL, and ADA from the GDLC portfolio would contradict the 1933 Securities Act. He believes that GDLC could offer a low-risk 'test run' for the SEC before further approval on other assets. He expressed confidence that the approval of GDLC would be a 'good opportunity' for subsequent approvals of stand-alone ETFs for the mentioned altcoins.
If approved, GDLC could mark the beginning of a new era for altcoin ETFs in the U.S., potentially opening new investment opportunities and increasing institutional interest in the crypto market.
