SEC Approves Grayscale Fund ETF: Altcoin Spot ETFs To Come In 2025

SEC Approves Grayscale Fund ETF: Altcoin Spot ETFs To Come In 2025 AllinCrypto July 2, 2025

On June 2, 2025, the US Securities and Exchange Commission (SEC) approved the Grayscale Digital Large Cap ETF, signaling a potential turning point for altcoin exchange-traded funds.

This milestone arrives after pressure from ETF analysts who argued that Grayscale’s fund performance made a compelling case for altcoin spot ETF approvals in 2025.

What Is the Grayscale Digital Large Cap ETF?

The newly approved ETF is based on Grayscale’s Digital Large Cap Fund (GDLC), launched in 2018. The fund led by Greyscale comprises a basket of major cryptocurrency assets, including:

• Bitcoin (BTC)
• Ethereum (ETH)
• XRP
• Cardano (ADA)
• Solana (SOL)

With over $754 million in assets under management, it stands as one of the largest crypto funds in the industry, with BTC making up 81.4% of the fund.

By turning this fund into an ETF, Wall Street investors now have access to a diversified selection of altcoins via traditional financial markets, avoiding the need to interact with crypto-native exchanges or decentralized platforms.

A Shift in SEC Leadership Paves Way for Crypto Dominance

The approval marks a dramatic shift from previous SEC policies under former chairman Gary Gensler. Under new SEC Chair Paul Atkins, a pro-crypto stance has emerged throughout the US.

The Trump administration has made clear its intentions to foster the US as a global crypto hub with major support for digital assets at the federal level.

Hester Peirce, head of the SEC’s Crypto Task Force, has advocated for experimentation in Web3 and decentralized technologies.

This new approach contrasts sharply with the SEC’s enforcement-heavy stance throughout the early 2020s.

Altcoin Spot ETFs May Arrive by Late 2025

Analysts believe the approval of Grayscale’s ETF will open the door to a series of individual spot altcoin ETFs.

According to Bloomberg ETF analysts James Seyffart and Eric Balchunas, the odds of several altcoin ETFs being approved in 2025 are extremely high, with estimated approval probabilities between 90–95%.

Cryptocurrencies likely to receive spot ETF approvals include:

• Litecoin (LTC)
• XRP
• Hedera (HBAR)
• Solana (SOL)
• Cardano (ADA)
• Dogecoin (DOGE)
• Polkadot (DOT)
• Avalanche (AVAX)

Other potential candidates like Sui (SUI) and Tron (TRX) have been mentioned, but may follow later with more chances of approval, similar to other alts.

Multiple firms, including Grayscale, 21Shares, Bitwise, Fidelity, and Canary Capital, filed ETF applications throughout 2024.

With the SEC’s updated guidance and friendlier regulatory posture, many of these applications are expected to move forward. Key ETF application deadlines for the SEC are approaching between October and December 2025.

Institutional Demand Surges

The shift is not just regulatory. Institutional interest in crypto is also increasing rapidly:

• Bitcoin ETFs witnessed $2.2 billion in inflows in the final week of June 2025
• BlackRock, Grayscale, and Fidelity are leading inflows
• Crypto-related stocks like Coinbase (COIN) and Circle (CRCL) have seen strong market performance

JPMorgan has predicted that approved spot altcoin ETFs could attract billions in new investments, significantly influencing prices and market cap for the underlying assets.

SEC’s New Crypto ETF Disclosure Guidelines

Alongside the ETF approval, the SEC issued a new statement on the disclosure and registration requirements for crypto asset ETPs.

This marks a formal acknowledgment that crypto ETFs are now a permanent fixture in U.S. finance. The SEC emphasized the need for transparency and compliance as firms move forward with launching more crypto-related investment products.

The approval of the Grayscale Digital Large Cap ETF is a signal that the US financial system is entering a new era where crypto and traditional finance are becoming increasingly intertwined.

For 2025, all eyes are on the SEC and whether it will usher in a wave of spot altcoin ETF approvals, potentially reshaping how digital assets are accessed, regulated, and adopted by both retail and institutional investors.

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