Grayscale's multi-coin ETF with XRP may get SEC approval before Solana's single-asset fund.

Meanwhile, XRP holds a 4.86% share in the GDLC fund, boosting its ETF prospects. Yet, top firms like BlackRock and Fidelity haven't filed yet, but experts expect them soon.

The battle for the first altcoin ETF approval is heating up, and a surprising contender might be taking the lead. While most attention is focused on Solana's single-asset fund and experts predict it will be next in line for approval after the launch of the first Bitcoin ETF in 2015, another fund could win the race.

According to Nate Geraci, president of The ETF Store, the Grayscale Digital Large Cap Fund (GDLC) has a strong chance of being the first to receive approval.

This multi-coin fund, which offers exposure to major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano, has been around since 2018.

What is the Grayscale Digital Large Cap Fund (GDLC)?The Grayscale Digital Large Cap Fund is a multi-asset crypto fund that provides exposure to the 10 largest cryptocurrencies by market cap.

The fund is passively managed and tracks the Digital Large Cap Top 10 Total Return Index, which is designed to measure the collective performance of the 10 largest cryptocurrencies in terms of market capitalization.

The fund’s portfolio is regularly rebalanced to maintain the desired weightings of the index constituents.

The fund is registered as a closed-end investment company and trades on the New York Stock Exchange under the ticker symbol "GDLC."

It is also covered by the same 1940 Act that governs traditional multi-asset ETFs.

Recently, Grayscale applied to convert this fund into an ETF. The SEC acknowledged the application by the end of 2024.

This makes the multi-coin fund a strong contender for the first altcoin ETF, especially as it aligns well with the SEC's preference for diversified products.

Geraci further notes that the lack of involvement from top firms like BlackRock and Fidelity is surprising. However, he anticipates their entries soon.

As the first few altcoin ETFs gain approval, we can expect a surge in applications from other firms, quickly expanding the altcoin ETF universe.

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