XRP, Solana, Cardano ETF Approval Likely This Week: What You Need to Know
The SEC may be on the verge of greenlighting a historic multi-asset crypto ETF—one that includes not just Bitcoin and Ethereum, but also XRP, Solana, and Cardano. And if approved, it could set off a domino effect of individual spot ETFs for these altcoins.
Let’s unpack what’s at stake, who’s watching closely, and what this means for investors.
The Final Countdown: SEC Faces July 2 Deadline
Grayscale’s Digital Large Cap Fund (GDLC), which currently holds over 760 million dollars in assets, is knocking on the SEC’s door for a conversion into a full-fledged ETF. The fund consists mostly of Bitcoin and Ethereum, but a combined 8.1 percent of the portfolio is allocated to XRP, Solana, and Cardano.
That relatively small percentage is a key reason why analysts believe this ETF stands a strong chance of approval.
According to ETF Store president Nate Geraci, the fund’s exposure to these altcoins is well within what regulators have tolerated for other non-traditional assets. He called the GDLC conversion “a low-risk sandbox” and said there’s a high likelihood the SEC gives it the green light.
Why This Matters: A Pathway to Spot Altcoin ETFs
The importance of this move can’t be overstated.
If GDLC’s conversion is approved, it would mark the first time U.S. investors can get regulated ETF exposure to XRP, Solana, and Cardano—even if only in modest amounts.
This is significant because:
- It sets precedent for single-asset ETFs for these tokens
- It gives the SEC real-time data on trading and flows, allowing them to evaluate risk more precisely
- It helps build regulatory comfort with a broader range of digital assets
Geraci noted that this approach mirrors what the SEC has already done in other areas, such as private credit. Since February, the agency has permitted ETFs to include up to 15 percent of their holdings in illiquid credit assets—so allowing a 10 percent exposure to additional cryptocurrencies isn’t a stretch.
SEC Engagement: A Strong Signal
Grayscale’s recent filing of an amended Form S-3 on June 26 adds fuel to the approval fire. These filings usually happen after detailed feedback from SEC staff, suggesting that discussions are active and substantive.
The updated form includes:
- Enhanced custody disclosures
- Adjusted creation-unit structures
- Clearer index methodology
All signs point to a fund sponsor and a regulator in serious conversation—not a standoff.
Industry Experts Raise Their Bets
Bloomberg ETF analysts James Seyffart and Eric Balchunas have boosted their odds of approval for individual XRP, Solana, and Cardano ETFs to 90 percent. Their rationale?
- The small weight of these assets in GDLC minimizes risk
- The SEC would face pressure to explain a rejection, or create new rules fast
- Regulatory conversations have turned “remarkably positive”
According to them, this isn’t just about GDLC anymore—it’s about setting up a framework for altcoin ETF approvals later in 2025.
What Happens If GDLC Is Approved?
If the SEC signs off on GDLC by July 2:
- XRP, SOL, and ADA will get their first ever exposure via a U.S. ETF
- The SEC gains surveillance capabilities for three more tokens
- Momentum builds for standalone altcoin ETFs in Q3 and Q4 of this year
For investors, this could be a watershed moment, opening new doors to regulated crypto exposure with reduced custody risk and enhanced transparency.
What’s the Catch?
Of course, not everything is guaranteed. Even with growing optimism, the SEC could still delay or reject the conversion on technical or legal grounds. But at this stage, denial would require the agency to take a hard stance on why 8 percent altcoin exposure is unacceptable—something they’ve historically avoided unless market manipulation is a concern.
The Bigger Picture
This potential approval is part of a broader trend:
- Bitcoin ETFs opened the floodgates in early 2024
- Ethereum ETFs followed mid-year
- Now we’re entering the multi-asset ETF phase, with altcoins like XRP, SOL, and ADA lining up
If GDLC gets approved, it would officially launch the next wave of mainstream crypto investment products in the U.S.
Quick Summary: What You Need to Know
- What’s happening? The SEC will decide by July 2 whether to approve Grayscale’s GDLC ETF conversion.
- What’s at stake? First-ever regulated ETF exposure to XRP, Solana, and Cardano.
- Why now? Their combined share of the fund is just 8.1 percent—low enough to pass regulatory scrutiny.
- What comes next? If approved, standalone ETFs for these altcoins could follow in late 2025.
FAQs
When will the SEC decide on GDLC?
By the close of business on July 2.
What coins are in GDLC?
Bitcoin, Ethereum, XRP, Solana, and Cardano.
Is this the first ETF with XRP, SOL, and ADA?
Yes, if approved, GDLC would be the first to offer any ETF exposure to those three altcoins.
Could this lead to spot ETFs for those coins?
That’s the expectation. Analysts say this move could pave the way for individual ETFs by year-end.
