SEC Approves Grayscale’s Mixed Crypto ETF, Opening Door for Broader Digital Asset Funds

The U.S. Securities and Exchange Commission (SEC) has approved the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF), signaling a notable shift in regulatory momentum that could pave the way for more diverse crypto-backed ETFs in the near future.

The decision was announced Tuesday in an official SEC filing, which confirmed the fund's approval on an “accelerated basis.” The Grayscale fund, which was previously only available to accredited investors through over-the-counter (OTC) markets, will now be more accessible to retail investors via standard ETF channels.

The Grayscale Digital Large Cap Fund is a basket of top-tier cryptocurrencies, with Bitcoin making up nearly 80% of its portfolio. Ethereum accounts for about 11%, while smaller allocations include Solana (SOL), Cardano (ADA), and XRP, each holding single-digit percentages.

This approval is particularly significant as it represents one of the first multi-asset crypto funds to receive the SEC’s green light in an ETF format. It also comes at a time when the agency is evaluating a growing slate of spot crypto ETF proposals, including those focused solely on altcoins like SOL, ADA, and DOGE.

Industry experts see the move as more than just a one-off approval. Nate Geraci, president of ETF Store, noted that the GDLC ETF offers the SEC a “test run” for incorporating additional crypto assets into regulated investment vehicles.

"XRP, SOL, and ADA together make up less than 10% of the GDLC’s holdings," Geraci said in a post on X. “It’s an easy way to gradually expand exposure.”

The regulatory environment for digital assets appears to be warming, especially following the inauguration of President Donald Trump in January. His administration is seen as taking a more open stance toward digital finance and blockchain innovation, contributing to an optimistic outlook for crypto-related financial products.