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XRP, SOL, and ADA – The Ultimate Combo: Approval of Multi-Asset ETF Highly Likely This Week
In a recent statement, ETF Store president Nate Geraci has expressed his confidence in the approval of Grayscale Investments’ proposal to transform their Digital Large Cap Fund (GDLC) into an exchange-traded fund. According to Geraci, this could lead to the greenlighting of individual spot ETFs on XRP, Solana, and Cardano shortly after.
The reasoning behind Geraci’s optimism lies in the fact that the GDLC has only 8.1% combined exposure to these altcoins, which is deemed too insignificant to trigger regulatory concerns related to liquidity or market manipulation risks.
This incremental approach aligns perfectly with the SEC’s own playbook. In January of this year, spot Bitcoin ETFs were approved after a federal court criticized the Commission for inconsistent reasoning. Furthermore, spot Ethereum ETFs followed seven months later.
Geraci highlights that the Commission already has a precedent to permit up to 15% of an ETF’s portfolio to consist of illiquid private-credit instruments, provided sponsors can demonstrate robust valuation and liquidity controls.
He argues it would be illogical to maintain separate thresholds for digital assets.
The regulatory environment is increasingly active, with Grayscale filing an amended Form S-3 for GDLC on June 26. The move serves as evidence that the SEC is actively engaged in the process.
Industry experts are also sharing Geraci’s assessment. Bloomberg Intelligence’s James Seyffart recently stated that the agency might approve GDLC precisely because the non-Bitcoin, non-Ethereum segment accounts for a mere 8.1% of the fund, which would require minimal regulatory intervention. He further emphasized that if approval is not granted this week, it could lead to the SEC having to create an exhaustive crypto-ETF framework on the fly or justify why such exposure poses an insurmountable risk.
If the conversion is approved, GDLC will become the first US spot ETF to provide investors with regulated access to XRP, Solana, and Cardano in a modest proportion.
Source: bitcoinist.com
