BTC, ETH, XRP, SOL, ADA Now in One Basket — SEC Greenlights Grayscale’s GDLC

The Grayscale GDLC has finally been approved for trading after the SEC earlier issued a stay order without any specific reason.
Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) have reacted strongly to this news.

The US Securities and Exchange Commission (SEC) has officially approved Grayscale’s Digital Large Cap Fund (GDLC) for trading on the stock exchange. Not just that, the Generic Listing Standards for Commodity-Based Trust Shares proposed by top US exchanges were also approved.

Grayscale

GDLC is the first multi-asset crypto Exchange Traded Product (ETP) set to be launched by Grayscale. As highlighted in our earlier discussion, the assets in this basket include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), with portfolio allocation of 72.23%, 12.17%, 5.62%, 4.03%, and 1% respectively.

The Road to Grayscale’s GDLC Groundbreaking Approval

According to Grayscale, the GDLC was purposely created to provide exposure of digital assets to investors without directly requiring them to store, buy, or secure them. In early July, the SEC approved Grayscale’s application to convert this into a spot ETF. Soon after, the SEC issued a stay order to review this approval. While no specific reason was given, it was speculated that this was due to internal procedural issues.

Responding to this, the company issued a letter highlighting that this decision was harming Grayscale, the Fund, and investors. Financial lawyer and ETF expert Scott Johnsson also added his voice, stating that the product would certainly launch, and it is a matter of when.

Given that Grayscale was suggesting they had productive talks with the SEC before approval, and they had made extensive amendments to the rule proposal in line with those discussions, my guess is the Rule 431 application was a parting gift from Crenshaw acting unilaterally. This is going to launch, it’s just a matter of when imo.

Reaction of Assets Involved (BTC, ETH, XRP, SOL, ADA)

Following this approval, BTC immediately surged to $117.9k. However, this was short-lived as the asset has now declined to $117.3k. According to market data, BTC has surged by 0.5% in the last 24 hours. As indicated in our recent analysis, BTC is expected to make a steady run to $160k by December 31 once it successfully crosses the $120k level and turns it into support.

ETH, another asset in the basket, has also surged to $4,602. Its 24-hour gain is still up by 2% and its seven-day gain is up by 4%. ETH’s price has been tipped to reach $10,000 this cycle, as we reported earlier.

Similarly, XRP has recorded a 1% gain on its daily price chart and a 2.9% gain on its weekly chart to trade at $3.1. As noted in our earlier post, analysts believe that ETH could peak between $5,000 and $15,000 this cycle.

SOL is currently trading at $246 after surging by 4.6% in the last 24 hours and 10% in the last seven days. For ADA, it is now trading at $0.91 and has recorded gains of 4.1% and 3% in the last 24 hours and seven days respectively. As mentioned in our previous news brief, analysts have predicted that SOL could hit $4000 this cycle.

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