Grayscale wins approval for Bitcoin and altcoin ETF

Grayscale ETF holding XRP, Solana, Cardano approved by SEC in major crypto fund milestone
The U.S. Securities and Exchange Commission has approved Grayscale’s application to convert its Digital Large Cap Fund into an ETF, signaling its openness to funds investing mainly in established cryptocurrencies like Bitcoin and Ethereum—though still hesitant to allow ETFs focused solely on smaller altcoins.
“Grayscale Investments may now offer an exchange-traded fund primarily focused on Bitcoin but also including Ethereum, XRP, Solana, and Cardano,” the SEC announced in a statement released Tuesday.
The Grayscale Large Cap Fund is modeled on the CoinDesk 5 Index, which tracks the performance of the five largest and most liquid digital assets. Bitcoin accounts for over 80% of the fund’s holdings. According to the SEC, the ETF will also allocate approximately 11% to Ethereum, 4.8% to XRP, 2.8% to Solana, and 0.8% to Cardano.
A Predictable but pivotal development
Before Tuesday’s approval, Bloomberg ETF analyst James Seyffart noted on X that the decision was expected, as Bitcoin and Ethereum together make up more than 90% of the fund’s capitalization.
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In 2023, Grayscale sued the SEC over repeated rejections of the fund’s ETF conversion, and its legal victory later contributed to the approval of spot Bitcoin ETFs.
Meanwhile, Seyffart reports that asset managers are now rallying around ETF proposals for Tron, Dogecoin, Sui, Avalanche, Litecoin, and several other altcoins. A wave of new ETF launches could arrive in the second half of 2025.
As we wrote, Grayscale files for Solana-ETF registration with SEC