- Grayscale’s GDLC fund with XRP and Cardano may get ETF approval before any Solana ETF.
- This could boost crypto ETF adoption in the U.S.
Grayscale’s multi-asset crypto fund—containing XRP and Cardano (ADA)—may secure U.S. regulatory approval to convert into an exchange-traded fund (ETF) before any standalone Solana ETF, according to ETF industry expert Nate Geraci.
On June 12, Geraci, president of The ETF Store, highlighted in a social media post that the Grayscale Digital Large Cap (GDLC) Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, could become the first multi-crypto fund of its kind to gain ETF status. He emphasized XRP and Cardano, suggesting that regulatory winds may be blowing in their favor.
Grayscale’s GDLC Positioning and Potential Impact
The GDLC Fund holds over $796 million in assets under management (AUM) as of June 12 and is currently available only to accredited investors. Grayscale filed Form S-3 in April to convert GDLC into an ETF, aiming for faster regulatory approval due to its status as an already publicly traded and regulated fund.
The New York Stock Exchange (NYSE) Arca also submitted Form 19b-4 to the U.S. Securities and Exchange Commission (SEC), requesting a rule change to allow GDLC to be listed and traded as an ETF. If approved, it would mark a significant milestone—not only for Grayscale but also for broader crypto ETF ambitions in the U.S. market.
Solana ETF Delays May Give GDLC the Edge
Meanwhile, potential spot Solana ETF issuers are facing hurdles. The SEC has recently asked these firms to revise and resubmit their Form S-1 filings. The requested updates focus on technical aspects such as in-kind redemptions and staking mechanisms, indicating the agency’s continued caution around Solana-based products.
This regulatory slowdown may inadvertently position the GDLC fund, with its diversified basket of assets and regulatory head start, as the frontrunner in the race for ETF approval.
A Strategic Leap for Crypto Exposure
If Grayscale secures ETF approval for GDLC ahead of a Solana fund, it could reshape the landscape of institutional crypto investment. It would also give XRP and Cardano early visibility in the ETF market—two assets often seen as overshadowed by Bitcoin and Ethereum.
As the SEC deliberates, all eyes will be on GDLC’s application, which may chart the path for the next wave of regulated crypto investment products in the U.S.
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