Bloomberg analyst James Seyffart raises approval probability for multiple altcoin ETF applications to 95%.
The U.S. Securities and Exchange Commission (SEC) is expected to rule this week on Grayscale's proposal to convert its GDLC Fund into a spot ETF. Ripple (XRP), Solana (SOL), and Litecoin (LTC) now lead with 95% approval odds, while other altcoins like Dogecoin (DOGE), Cardano (ADA), Polkadot (DOT), Hedera (HBAR), and Avalanche (AVAX) follow closely at 90%.
Key Factors Driving the ETF Approval Surge
1. Grayscale’s GDLC Fund Conversion Decision
A pivotal moment approaches as the SEC prepares to rule on Grayscale’s revised S-3 filing to transform its Digital Large Cap Fund (GDLC) into a spot ETF. The fund holds a diversified portfolio:
- Bitcoin (79.90%)
- Ethereum (11.32%)
- XRP (4.99%)
- Solana (3.01%)
- Cardano (0.78%)
With $774 million in assets under management, GDLC’s approval is seen as a litmus test for broader altcoin ETF viability.
2. Analyst Consensus on Approval Odds
James Seyffart’s updated projections highlight:
- 95% likelihood for XRP, SOL, and LTC ETFs by 2025.
- 90% likelihood for DOGE, ADA, DOT, HBAR, and AVAX.
ETF Store President Nate Geraci notes, "Approval of GDLC this week is highly probable, paving the way for individual spot ETFs like XRP and SOL."
Market Implications of Spot ETF Approvals
Increased Institutional Adoption
Spot ETFs would bridge traditional finance and crypto, offering regulated exposure without direct asset ownership.
Price Catalysts for Altcoins
Historical precedent (e.g., Bitcoin ETF approvals) suggests inflows could drive demand for underlying assets.
👉 Explore how ETF approvals reshape crypto markets
FAQ: Spot Crypto ETF Approvals
Q1: Why are XRP, SOL, and LTC leading in approval odds?
A1: Their liquidity, market capitalization, and established use cases make them prime candidates for regulated products.
Q2: How does GDLC’s approval impact other ETFs?
A2: A green light would signal SEC openness to altcoin ETFs, accelerating filings for similar products.
Q3: What risks remain for investors?
A3: Regulatory delays or rejections could trigger short-term volatility, though long-term trends favor adoption.
👉 Stay updated on ETF developments
Disclaimer: This content reflects the author’s opinion and is not investment advice. Consult a financial advisor before making decisions. CFDs are leveraged products with risk of total loss.