Grayscale's GDLC ETF, Including XRP, BTC, and ETH, Gains Momentum as the SEC Considers Its Approval

The Grayscale Digital Large Cap Fund (GDLC) ETF, including XRP, BTC, and ETH, gains momentum as the SEC considers its approval

The U.S. Securities and Exchange Commission (SEC) has signaled a strong possibility of approving the Grayscale Digital Large Cap Fund (GDLC) ETF. This multi-token ETF, which includes exposure to XRP, is likely among the next cryptocurrency products to gain approval, according to Nate Geraci, the president of The ETF Store.

Geraci, a recognized expert in the ETF industry, highlighted the fact that the SEC has already acknowledged the Grayscale ETF application.

Earlier in October 2024, Grayscale filed to convert its existing trust, GDLC, into an ETF. The SEC’s action in late 2024 recognized this application.

The Grayscale Digital Large Cap Fund (GDLC) offers diversified exposure to several major digital assets, including Bitcoin (BTC), Ethereum (ETH), and XRP. Currently, the fund allocates 78.77% of its assets to Bitcoin, 12.4% to Ethereum, and 4.9% to XRP.

Smaller portions of the fund’s assets are invested in Solana (SOL) and Cardano (ADA). This broad mix of digital assets aims to appeal to investors seeking balanced exposure to the cryptocurrency market.

Chances of Altcoin ETFs Surging Above 85%

In other developments, the chances of the SEC approving altcoin ETFs are increasing. Experts like James Seyffart, an analyst at Bloomberg, predict a high probability of approval for Solana (SOL) and Litecoin (LTC) ETFs, assigning them a 90% chance. Close behind at 85% is XRP, indicating strong optimism among analysts.

This comes as part of a broader trend where traditional financial markets are showing increasing interest in investing in altcoins.

Seyffart further revealed that the SEC and the issuers are still discussing the specifics of these ETFs. Notably, the SEC is open to including staking provisions, especially for Solana, which could be a breakthrough moment for cryptocurrency ETFs.

As these conversations continue, there is a growing anticipation that the approval of these altcoin ETFs, including the Grayscale GDLC ETF, may not be far off.

Memecoin ETFs: A 2026 Possibility

Apart from traditional altcoins like XRP and Solana, there is also interest in ETFs focused on memecoins, such as Dogecoin (DOGE). According to Bloomberg’s Eric Balchunas, there is a “really good chance” that an ETF dedicated to actively trading memecoins will emerge by 2026.

The surging popularity of memecoins, largely driven by retail investors, has prompted ETF issuers to consider creating funds that provide exposure to these assets.

Several issuers, including Grayscale, Bitwise, and 21Shares, have already filed for a Dogecoin ETF, signaling the increasing institutional interest in memecoin-focused investment products.

The rise of memecoins, which now have a combined market cap of over $60 billion, is seen as opening up a new chapter for cryptocurrency ETFs. Balchunas envisions active memecoin ETFs that would constantly adjust their holdings, buying promising memecoins and selling weaker ones based on market performance.