Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Grayscale ETF Wins SEC Approval for 5 Crypto Assets
Crypto | July 2, 2025
SEC Approves Grayscale ETF With Five Major Crypto Assets, Signalling Broader Regulatory Path for Multi-Asset Funds
On June 27, 2025, the U.S. Securities and Exchange Commission (SEC) officially approved the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a spot exchange traded fund (ETF). The fund is now listed on NYSE Arca, offering investors access to five major crypto assets in one regulated product. It's the first time that a U.S. spot ETF includes not just Bitcoin and Ethereum but also Solana, XRP and Cardano, establishing a new precedent for how diversified crypto products can be structured and approved under SEC oversight.
What the ETF Holds
The Grayscale Digital Large Cap ETF largely follows the CoinDesk Large Cap Select Index, which rebalances monthly. As of July 1, 2025, the fund holds:
- 80.2% Bitcoin (BTC)
- 10.4% Ethereum (ETH)
- 4.4% XRP
- 3.0% Solana (SOL)
- 1.9% Cardano (ADA)
GDLC now offers direct access to these assets through a public listing.
What Changed
Prior to this approval, GDLC operated as a closed-end trust on OTC markets. It lacked daily liquidity and tradeed at a discount or premium to the fund’s net asset value. The new ETF lets large investors swap crypto directly for shares in the fund, and vice versa, which helps align market prices with the actual value of the crypto held.
See: SEC Advances XRP ETF Review, Investors Await Decision
Grayscale completed the conversion of approx $775 million USD in assets by the SEC’s July 2 compliance deadline, making the ETF now the largest multi-crypto fund of its kind in the United States.
Implications of the SEC's Approval
This is the first time U.S. investors can now access a range of large-cap crypto assets, beyond just Bitcoin and Ethereum, through a regulated spot ETF. It reduces the need to manage separate holdings or rely on offshore exchanges.
Analysts now estimate a 95% likelihood that ETFs for XRP, Solana, and Litecoin will be approved in the U.S. later this year. Major firms including Bitwise and Franklin Templeton have already submitted filings.
This approval reinforces legal and regulatory precedent and build's on Grayscale’s 2023 legal victory, which challenged the agency’s rejection of a Bitcoin ETF. That ruling continues to impact how the SEC responds to ETF applications. It also highlights the SEC's evolving policy on crypto including assets that were previously under regulatory scrutiny such as XRP. The SEC is now clearly willing to consider broader crypto exposure in compliant funds, even while legal classification questions remain up in the air.
See: SEC Clears Crypto Staking. What It Means for Canada
The door to broader index-based crypto products is likely to follow, such as new ETFs tied to crypto indices, sector themes, and/or platform categories. See NCFA’s article on the crypto ETF battle intensifying with XRP, Solana, and Dogecoin.
Canadian Lens
Canada continues to lead with crypto ETF adoption. The Purpose XRP ETF launched on the TSX on June 18, 2025, while Canadian investors already have access to ETFs for Bitcoin, Ethereum, and Solana. See also NCFA’s report on Canada’s first Solana spot ETF with staking.
For Canadian fintechs and investors, growing alignment in North American regulation signals an opportunity to expand services built around compliant digital asset products. As U.S. markets open up to a wider mix of crypto ETFs, Canadian firms offering custody, compliance, or portfolio tools will be well positioned to support cross-border demand and deepen product innovation.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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