TLDR
Grayscale’s GDLC ETF, including XRP, BTC, and ETH, gains momentum as the SEC considers its approval, with altcoin ETFs on the rise.
Altcoin ETFs like Solana and XRP are gaining traction, with approval chances surging to 85%, boosting market optimism.
The SEC’s openness to staking provisions for Solana and other altcoins signals a possible breakthrough for cryptocurrency ETFs.
Memecoin ETFs, driven by retail demand, could see approval by 2026, with Dogecoin leading the charge in institutional interest.
Nate Geraci, the president of The ETF Store, has expressed strong optimism regarding the approval of the Grayscale Digital Large Cap Fund (GDLC) ETF. He believes this multi-token ETF, which includes exposure to XRP, is likely to be among the next cryptocurrency products approved by the U.S. Securities and Exchange Commission (SEC).
Grayscale Multi-Token ETF and Its Composition
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 holds 78.77% of its assets in Bitcoin, 12.4% in Ethereum, and 4.9% in XRP.
Source: X
Smaller allocations are also made to Solana (SOL) and Cardano (ADA). This diverse mix of digital assets is intended to help the fund appeal to investors seeking balanced exposure to the cryptocurrency market.
Grayscale initially filed in October 2024 to convert the GDLC into an ETF, and the SEC acknowledged the application in late 2024. This recognition has generated optimism among analysts, as the fund’s allocation to altcoins, particularly XRP, is relatively modest. The lower liquidity of these assets is viewed as a potentially less risky proposition for the SEC to approve.
Growing Optimism Around Altcoin ETFs
The chances of SEC approval for altcoin ETFs are improving, with experts like Bloomberg’s James Seyffart predicting high approval odds. He estimates that Solana (SOL) and Litecoin (LTC) ETFs have a 90% chance of gaining approval, followed closely by XRP at 85%. These figures reflect a growing recognition of altcoins as viable investment assets in traditional financial markets.
Seyffart also highlights the ongoing discussions between the SEC and issuers regarding the specifics of these ETFs. One noteworthy point is the SEC’s openness to the inclusion of staking provisions, particularly for Solana, which could be a significant development for the cryptocurrency ETF landscape. As these discussions continue, there is a growing sense that approval for these altcoin ETFs, including the Grayscale GDLC, could be on the horizon.
Memecoin ETFs Approval To Follow in 2026
In addition to traditional altcoins like XRP and Solana, there is increasing 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 growing popularity of memecoins, driven largely 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 exceeding $60 billion, is seen as a new frontier for cryptocurrency ETFs. Balchunas suggests that active memecoin ETFs could dynamically adjust their holdings, buying promising memecoins and selling weaker ones based on market performance.
US SEC’s Stance and Outlook
Despite a more crypto-friendly regulatory environment, the SEC has remained cautious in approving cryptocurrency-related financial products.
Analysts note that approval for crypto ETFs, particularly those focused on altcoins or memecoins, will depend on various factors, including regulatory clarity and market demand. However, there is growing optimism within the industry that the approval of the Grayscale GDLC ETF and other altcoin and memecoin ETFs could be a turning point.
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