The U.S. Securities and Exchange Commission (SEC) has officially approved the first spot cryptocurrency index ETF tracking major altcoins, marking a pivotal moment in the mainstream adoption of digital assets. This landmark decision paves the way for broader investor access to a diversified basket of leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
On July 1, the SEC greenlit Grayscale’s Digital Large Cap Fund (GDLC) conversion into a spot multi-crypto exchange-traded fund. The newly structured ETF will list on NYSE Arca and offer exposure to five top-tier digital assets. Currently managing $754 million in assets under management (AUM), GDLC now provides a regulated, stock-like vehicle for traditional and retail investors to gain diversified crypto exposure—similar to how the S&P 500 offers access to major U.S. equities.
Grayscale initially filed for this conversion in November 2024, and despite previous delays from the SEC, the final decision arrived just ahead of the July 2 deadline. According to James Seyffart, senior ETF analyst at Bloomberg, the approval was widely anticipated.
“We expected this approval. Over 90% of the fund’s composition is Bitcoin and Ethereum. The next key date is Bitwise’s BITW deadline on July 31. But the SEC could act earlier…”
Bloomberg analysts had already projected a greater than 90% chance of approval for both standalone altcoin ETFs and crypto index funds by mid-2025, citing increasing regulatory clarity and institutional demand.
What This Means for XRP, SOL, and ADA
While BTC and ETH dominate the fund’s weighting, the inclusion of XRP, SOL, and ADA signals growing regulatory acceptance of these major altcoins. Market observers interpret this as a strong indicator that standalone spot ETFs for these assets may follow.
Nate Geraci, president of ETF Store, believes Grayscale’s index ETF is a strategic stepping stone toward individual ETF approvals.
“XRP, SOL, and ADA are now effectively being vetted through a 33 Act ETF structure. This is a clear signal—next could be individual spot ETFs for XRP, SOL, ADA, and others.”
This shift not only enhances legitimacy but also increases liquidity and institutional interest in these networks. With regulatory scrutiny already passed at the index level, the path for dedicated ETF filings becomes significantly smoother.
👉 Discover how index ETF approvals could unlock massive growth for altcoins like XRP and SOL.
Whale Activity Signals Market Confidence
On-chain data reveals telling patterns in whale behavior across XRP and ADA ecosystems—hinting at strong conviction ahead of potential ETF developments.
For XRP, wallets holding between 1 million and 100 million tokens stabilized after aggressive accumulation in June. However, a notable sell-off occurred among ultra-large holders: addresses with 100 million to 1 billion XRP sold over 400 million tokens in the past 24 hours. This movement contributed to a 6% price dip during the week.
In contrast, ADA’s largest non-exchange wallets show sustained bullish positioning. The top three wallets holding between 1 million and 1 billion ADA have been consistently accumulating since mid-June. This accumulation phase suggests strong confidence in a future price rebound—possibly timed around upcoming regulatory milestones.
Such divergent behaviors highlight nuanced market sentiment: while short-term profit-taking occurs at the highest tiers, mid-tier whales are positioning for long-term gains.
The Road Ahead: From Index ETFs to Individual Approvals
The approval of Grayscale’s multi-asset crypto ETF marks the beginning of a new era—not just for Grayscale, but for the entire digital asset ecosystem. By establishing a precedent for altcoin inclusion in regulated financial products, the SEC has indirectly validated the investment case for assets beyond BTC and ETH.
With Bitwise’s 10 Crypto Index Fund (BITW) awaiting its own decision by July 31, momentum continues to build. Analysts expect the SEC to maintain its evolving stance, potentially accelerating decisions on individual spot ETFs for Solana, XRP, and Cardano later in 2025.
This progression mirrors the BTC ETF journey: first came the index-based products, then standalone spot ETFs followed. Now, history may be repeating itself with altcoins.
👉 See how early movers are positioning ahead of the next wave of crypto ETF approvals.
Core Keywords Integration
This development centers around several key themes essential for search visibility and reader engagement:
- Grayscale ETF: The primary subject of regulatory action and market interest.
- XRP ETF: Anticipated as a potential next step following index inclusion.
- SOL ETF: Gaining momentum after recent staking-related approvals.
- ADA ETF: Supported by whale accumulation and growing ecosystem maturity.
- Crypto index ETF: A new asset class bridging traditional finance and digital assets.
- SEC approval: The critical gatekeeper influencing all crypto ETF progress.
- Spot ETF: Distinguishes from futures-based funds, offering direct asset exposure.
- Altcoin investing: Reflects shifting investor focus beyond Bitcoin and Ethereum.
These keywords are naturally embedded throughout the narrative to align with high-intent search queries while maintaining readability.
Frequently Asked Questions (FAQ)
Q: What is a crypto index ETF?
A: A crypto index ETF is an exchange-traded fund that tracks a basket of multiple cryptocurrencies, allowing investors to gain diversified exposure through a single security traded on traditional stock exchanges.
Q: Why is Grayscale’s ETF approval important for XRP, SOL, and ADA?
A: Inclusion in a regulated index ETF signifies regulatory acceptance and opens the door for future standalone ETFs. It also increases institutional demand and market liquidity for these altcoins.
Q: Could this lead to individual spot ETFs for XRP or SOL?
A: Yes. Analysts view index ETFs as precursors to individual product approvals. Given the SEC’s precedent with Bitcoin ETFs, a similar path is expected for major altcoins.
Q: How does whale activity affect price predictions?
A: Whale movements often signal market sentiment. Accumulation by mid-tier holders typically indicates long-term confidence, while large sell-offs can trigger short-term volatility.
Q: When might we see a standalone ADA ETF?
A: While no official filings are confirmed yet, growing ecosystem development and regulatory progress suggest potential filings in late 2025 or early 2026.
Q: Is investing in crypto ETFs safer than buying coins directly?
A: For many investors, yes. ETFs offer regulatory oversight, custodial security, and ease of access via brokerage accounts—making them ideal for risk-averse or traditional investors.
A New Chapter in Crypto Adoption
The summer of 2025 is shaping up to be transformative for cryptocurrency markets. With the SEC approving both Solana staking mechanisms and now a multi-asset spot index fund, the regulatory environment is clearly evolving.
Grayscale’s GDLC sets a powerful precedent: altcoins can be part of regulated financial products. This milestone reduces uncertainty and strengthens investor confidence across the board.
As attention turns to Bitwise’s upcoming deadline and potential filings for individual XRP, SOL, and ADA ETFs, one thing is clear—the infrastructure for mass crypto adoption is being built—one approval at a time.
👉 Stay ahead of the next major shift in crypto investing—explore what’s coming next.