Grayscale Fund Holding BTC, ETH, XRP, SOL, and ADA Receives SEC Approval for ETF Conversion

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Crypto asset manager Grayscale has secured approval from the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large-Cap Fund into an exchange-traded fund (ETF). The fund comprises the top five cryptocurrencies by market capitalization, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA), as tracked by the CoinDesk Five Index.

Key Details of the Approved ETF Conversion

The SEC greenlit the conversion just one day before the decision deadline, marking a pivotal moment for Grayscale after previous last-minute rejections.

Asset Allocation Breakdown:

Bloomberg ETF analyst James Seyffart noted that approval was widely anticipated due to the fund’s heavy weighting toward BTC and ETH, which together account for over 90% of holdings.

👉 Explore how ETF conversions impact crypto markets

Next Steps: Bitwise’s Pending ETF Decision

Bitwise is next in line for SEC review, seeking to convert its Bitwise 10 Crypto Index Fund (BITW) into an ETF. BITW’s current holdings include:

Anticipated Trends: Altcoin ETFs Gaining Traction

Analysts predict a surge in ETF applications for smaller altcoins like Dogecoin (DOGE) and Tron (TRX) in late 2025. The SEC has yet to approve any single-asset altcoin ETFs, but market momentum suggests growing institutional interest.

FAQ Section

1. Why did the SEC approve Grayscale’s ETF conversion?
The fund’s dominance by BTC and ETH—established assets with clearer regulatory frameworks—likely eased approval.

2. How does this impact crypto investors?
ETF conversions enhance liquidity and accessibility, attracting institutional capital.

3. Will the SEC approve altcoin-only ETFs soon?
While demand exists, regulatory clarity for smaller altcoins remains a hurdle.

👉 Stay updated on crypto ETF developments

Long-Term Implications

This approval signals broader acceptance of crypto-based financial products, potentially paving the way for more diversified offerings. However, investors should monitor regulatory shifts and market volatility.

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