Solana ETF Dreams on Hold: Grayscale’s New Crypto ETF Might Take the Lead
Nate Geraci, president of ETF Store, has predicted the next cryptocurrency spot exchange-traded fund to receive regulatory approval. He revealed in a tweet today that the Solana ETF could not be the front-runner for approval by the US Securities and Exchange Commission (SEC) next. He asserted that before the Solana spot ETFs, the Wall Street regulator might approve a Grayscale multi-asset fund that included Cardano and XRP.
Grayscale’s GDLC Fund Up 11% YTD: Could SEC Approval Be Imminent?
To be more precise, Geraci said the Grayscale Digital Large Cap Fund will probably be approved next. Since its launch in 2018, the crypto basket product has given investors access to premium digital assets such as Cardano, Ethereum, XRP, Bitcoin, and Solana.
In particular, as of June 11, 78.77% of the Grayscale Digital Large Cap Fund is held by Bitcoin, 12.40% by Ethereum, 4.86% by XRP, 3.04 percent by Solana, and 0.93% by Cardano. As of yesterday, the GDLC was trading at $47.44, up 11% so far this year and 14% so far this month.
Grayscale’s $800M Digital Asset Fund Inches Closer to ETF Status
In order to turn the about $800 million asset under management (AUM) fund into an ETF, Grayscale submitted an S-3 form to the US SEC in April. Institutional and individual investors would have more varied exposure to digital assets if it were approved. Notably, a comparable index product has been approved by the US SEC. In December, it gave its assent to Hashdex and Franklin Templeton‘s mixed fund, which provides exposure to the two biggest cryptocurrencies by market capitalization, Ethereum and Bitcoin. Consequently, Geraci said that the Grayscale Large Cap fund might be the next to be approved by the government, even before the Solana spot ETFs.
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