Grayscale ETF Approved by SEC: Bitcoin, Ethereum, XRP, and ADA Head to Wall Street

Grayscale ETF Approval Marks Milestone in Crypto Fund Expansion

In a significant stride for the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) has approved a pivotal rule change allowing Grayscale’s Digital Large Cap Fund to trade as an Exchange-Traded Fund (ETF) on NYSE Arca. This decision marks one of the first instances where a multi-asset crypto fund will trade on a regulated U.S. stock exchange, providing both retail and institutional investors a structured pathway to diversified crypto exposure without the complexities of direct wallet management.

The approval was granted under Section 19(b)(2) of the Exchange Act, officially greenlighting a proposal initially submitted by NYSE Arca. The ETF will include a basket of leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, and Cardano (ADA). As Grayscale expands its product offerings, this milestone cements the evolving intersection between traditional finance and digital assets, signaling a maturing phase for crypto within mainstream investment frameworks.

Why This Matters for Investors

Unlike single-asset funds, the Grayscale ETF offers exposure to a diversified portfolio of leading cryptocurrencies in a single regulated product. This broad-based exposure enables investors to mitigate risks associated with the volatility of individual assets while participating in the sector’s overall growth.

For everyday investors, the ETF simplifies crypto investing by eliminating the need for crypto wallets, navigating decentralized exchanges, or grappling with complex custody solutions. For institutions, it offers a compliant, familiar investment vehicle while expanding the potential for broader adoption of crypto assets within portfolios traditionally reserved for equities and bonds.

Market Reactions: Crypto Prices and Investor Sentiment

Despite the optimistic development, the crypto market experienced a slight downturn following the announcement. As of the latest market data:

• Bitcoin (BTC) is trading at $106,280, down 0.74% in 24 hours.

• Ethereum (ETH) stands at $2,435, down 1.66%.

• XRP is priced at $2.18, showing a 1.92% decline.

• Cardano (ADA) is at $0.5509, reflecting a 2.60% decrease.

The current decline is attributed more to macroeconomic uncertainties than the ETF approval itself. Concerns around the upcoming July 9th tariff updates under President Trump’s administration have introduced new fears of potential trade wars. President Trump’s statements confirming that tariffs will proceed as scheduled have created a risk-off environment across markets, with traders anticipating that any escalation in trade tensions could indirectly affect the crypto sector by influencing risk sentiment and liquidity.

Source: CoinMarketCap

Bitwise Still Awaits SEC Decision

While Grayscale’s approval marks a pivotal milestone, other crypto asset managers, such as Bitwise, are still awaiting regulatory decisions. Bitwise has filed for approval of its Bitwise 10 Crypto Index Fund, which aims to provide investors with exposure to a broader range of digital assets through a single investment product.

The SEC has not provided a definitive timeline for the Bitwise decision. However, the increasing interest in diversified crypto ETFs suggests that additional approvals could follow, paving the way for a wider range of crypto investment vehicles in the U.S. markets.

A Slow but Steady Embrace by Regulators

The approval of Grayscale’s multi-asset ETF follows months of discussions and negotiations between crypto firms and regulators. In 2024, the SEC approved several spot Bitcoin ETFs and Ethereum ETFs, which resulted in billions of dollars flowing into the crypto markets, driving price surges and increased institutional interest.

Following these landmark approvals, companies like Grayscale submitted additional applications for Ethereum staking ETFs and single-asset funds for cryptocurrencies such as Solana and Litecoin. While some of these applications remain under review, the precedent set by previous approvals suggests a gradual but steady movement toward regulatory acceptance of crypto-based investment products.

Ethereum ETFs alone, even without staking capabilities, have attracted over $2.28 billion in investment since their approval, underscoring strong market demand for crypto exposure through traditional financial instruments. Grayscale’s Ethereum staking ETF proposal, if approved later in 2025, could further diversify available products in the market and attract additional capital from investors seeking yield generation within their crypto holdings.

Why Grayscale’s Approval Is a Landmark Event

This SEC approval is not just another listing on the exchange. It reflects a growing comfort among regulators toward crypto products when offered within controlled, compliant frameworks. Each approval not only validates the crypto industry’s legitimacy but also encourages other firms to develop and file for similar products, facilitating mainstream adoption of cryptocurrencies.

Moreover, it signals to institutional investors that crypto is transitioning from speculative assets to recognized components within diversified portfolios. This change could usher in a new era where digital assets are integrated alongside equities, bonds, and commodities as standard investment options for pensions, endowments, and retail investors alike.

Challenges Ahead

Despite the progress, challenges remain. The crypto industry continues to face regulatory scrutiny regarding investor protections, market stability, and the prevention of fraud and manipulation. While the SEC’s approval indicates a willingness to integrate crypto into the financial system, the pace of future approvals will depend on how effectively the industry can address compliance and security concerns.

Additionally, macroeconomic factors such as interest rate policies, inflation concerns, and geopolitical tensions will continue to influence crypto markets, sometimes overshadowing positive regulatory developments.

Final Thoughts: Crypto’s Path Toward Mainstream Legitimacy

The SEC’s approval of the Grayscale Digital Large Cap Fund as an ETF represents a watershed moment for the crypto industry, signaling the next phase in its evolution toward mainstream adoption. As regulatory frameworks solidify and product offerings diversify, the crypto market is poised to attract a wider investor base, enhancing liquidity and fostering growth.

Investors, both retail and institutional, now have the opportunity to participate in the digital asset ecosystem through regulated, transparent, and familiar investment channels, mitigating some of the complexities traditionally associated with crypto investing.

As the industry awaits further updates, including decisions on other multi-asset and staking ETFs, the Grayscale approval is a positive indicator that the integration of crypto into the broader financial system is no longer a matter of “if,” but “when.” For now, the approval stands as a testament to the maturing crypto industry, providing a glimpse into a future where digital assets and traditional finance coexist seamlessly.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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