SEC approves Grayscale's mixed crypto fund, signaling momentum for other ETF proposals

The U.S. Securities and Exchange Commission approved on an "accelerated basis" an exchange-traded fund that looks to convert the Grayscale Digital Large Cap Fund LLC, which could signal positive momentum for numerous other cryptocurrency fund proposals.

 The SEC approved that fund on Tuesday in a filing.

"It is therefore ordered, pursuant to Section 19(b)(2) of the Exchange Act,  that the proposed rule change (SR-NYSEARCA-2024-87), as modified by Amendment No. 1, be, and hereby is, approved on an accelerated basis," the agency said.

The fund currently trades over the counter for accredited investors and is composed primarily of bitcoin at almost 80%, then Ethereum at about 11% — Solana, Cardano, and XRP are also included with single-digit percentages, according to its website.

The SEC is also considering a wide array of crypto ETFs, from ones that track SOL to DOGE in the face of a friendlier regulatory environment for crypto following President Donald Trump's inauguration in January.

Nate Geraci, president of the ETF Store, said on Sunday that Grayscale's approval "would then be followed later by approval for individual spot ETFs on xrp, sol, ada, etc."

"Side benefit for SEC in approving GDLC is that it would provide nice 'test run' for addn’l crypto assets in ETF wrapper…xrp, sol, & ada represent < 10% combined of GDLC’s holdings," Geraci said in the post on X. "Easy way to slowly step into other assets."