Grayscale’s Bold Move: Mixed Crypto ETF Request for Solana, XRP & AVAX Lands on SEC’s Table

·

The world of cryptocurrency continues its march into mainstream finance, and Grayscale is leading the charge with a groundbreaking new application that could reshape how investors access digital assets. In a strategic move that has sent ripples across the financial sector, Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into a mixed crypto ETF—one that includes not only Bitcoin and Ethereum but also high-profile altcoins like Solana (SOL), Ripple (XRP), and Avalanche (AVAX).

This development marks a pivotal moment in the evolution of crypto-based financial products, signaling growing institutional confidence in digital assets beyond the two largest cryptocurrencies.

Grayscale Seeks Approval for a Diversified Crypto ETF

Grayscale’s latest filing—submitted on Form 19b-4—requests SEC approval to transform its existing Grayscale Digital Large Cap Fund LLC (GDLC) into a fully tradable exchange-traded fund. If approved, this would allow traditional investors to gain exposure to a basket of top-tier cryptocurrencies through a single, regulated financial instrument.

Currently trading at $23.15 per share, GDLC has delivered an impressive 33.35% year-to-date return, with over 10% growth in the past three months alone. This strong performance underscores growing demand for diversified crypto exposure in regulated markets.

The proposed ETF would include:

👉 Discover how next-gen ETFs are unlocking institutional access to altcoins.

This isn’t Grayscale’s first foray into ETF innovation. In January 2024, it secured landmark approval for a Bitcoin spot ETF, becoming one of the first firms to bring BTC into the traditional investment fold. Then in June 2024, it launched an Ethereum-based ETF, further cementing its role as a bridge between crypto and Wall Street.

Now, by pushing for a multi-asset ETF, Grayscale aims to expand the frontier even further—bringing altcoins like SOL, XRP, and AVAX into the regulated spotlight.

Why a Mixed Crypto ETF Matters

The introduction of a diversified crypto ETF carries significant implications for both retail and institutional investors. Here’s why:

1. Increased Accessibility

Most traditional investors remain cautious about directly purchasing and storing cryptocurrencies. A regulated ETF eliminates the need for private keys, wallets, or exchanges—offering a familiar, secure way to invest in digital assets through brokerage accounts.

2. Enhanced Liquidity

By pooling multiple high-demand cryptos into one product, the ETF could drive increased trading volume and tighter bid-ask spreads across all underlying assets—especially for XRP and AVAX, which have historically faced lower institutional liquidity.

3. Regulatory Validation

Inclusion in a SEC-reviewed product like an ETF acts as a de facto endorsement of an asset’s legitimacy. For XRP and SOL—both of which have faced regulatory scrutiny—this could be a major step toward broader acceptance.

“If this goes through, expect more liquidity and stronger price stability across SOL, XRP, and AVAX.”
— Industry Analyst Commentary

Core Keywords Driving Market Interest

As investor appetite grows, several key themes are emerging:

These terms reflect not just search trends but real shifts in market behavior. For example, a recent survey by Charles Schwab Corporation found that 45% of ETF investors are interested in allocating capital to crypto-based funds in the near future—especially if they offer diversified exposure.

Challenges Ahead: Regulatory Hurdles Remain

Despite the momentum, Grayscale’s path isn’t without obstacles.

The SEC has long maintained that certain cryptocurrencies qualify as unregistered securities. Both XRP and SOL have been subjects of regulatory debate:

Including these assets in an ETF may prompt intense review—or even rejection—from regulators wary of setting precedents.

Additionally, the fund’s composition has shifted over time. In April 2024, it included Cardano (ADA) and Polygon (MATIC), but those were later replaced with XRP and AVAX—suggesting Grayscale is strategically aligning with assets it believes have stronger long-term potential and clearer regulatory trajectories.

FAQ: Your Questions About Grayscale’s Mixed Crypto ETF

What is a mixed crypto ETF?

A mixed crypto ETF is an exchange-traded fund that holds multiple cryptocurrencies instead of just one. Unlike single-asset ETFs like the Bitcoin spot ETF, it offers diversified exposure to a basket of digital assets such as BTC, ETH, SOL, XRP, and AVAX—all within a single tradable security.

Why include XRP and SOL if they’re considered securities?

While the SEC has expressed concerns about XRP and SOL being securities, recent legal developments suggest a more nuanced approach. Grayscale may be betting that their widespread use as decentralized network tokens outweighs initial classification risks—especially as other institutions explore similar products.

How does this affect retail investors?

Retail investors benefit from easier access to altcoins through regulated channels. Instead of navigating complex exchanges or custody solutions, they can buy shares of the ETF through standard brokerage platforms—just like any stock or traditional ETF.

👉 See how advanced trading platforms are integrating next-gen crypto financial products.

Will this boost prices for SOL, XRP, and AVAX?

Historically, inclusion in major financial products leads to increased demand. The approval of Bitcoin and Ethereum ETFs triggered significant inflows and price appreciation. A similar effect could occur for SOL, XRP, and AVAX—if the ETF launches successfully.

Is GDLC already an ETF?

No. Currently, GDLC operates as a private investment vehicle with limited liquidity and higher fees. Converting it into an ETF would make it publicly tradable on national exchanges, significantly improving accessibility and reducing costs.

What happens if the SEC rejects the application?

Rejection would delay—but not stop—Grayscale’s ambitions. The firm has shown persistence in past battles (notably its two-year legal fight for the Bitcoin ETF). It could revise the proposal, exclude contested assets temporarily, or continue advocating for clearer crypto regulations.

The Bigger Picture: Institutional Adoption Accelerates

Grayscale’s move reflects a broader trend: institutional finance is no longer waiting on the sidelines. With BlackRock, Fidelity, and now Grayscale pushing innovative crypto products, the line between traditional finance and digital assets is blurring.

A successful mixed crypto ETF could set a precedent for future multi-asset digital funds—including those featuring Polkadot, Chainlink, or even tokenized real-world assets.

Moreover, global markets are watching closely. Approval in the U.S. often influences regulatory decisions elsewhere, potentially accelerating international adoption of diversified crypto investment vehicles.

👉 Explore how global investors are positioning for the next wave of crypto innovation.

Final Thoughts

Grayscale’s application for a mixed crypto ETF featuring Solana, XRP, and AVAX is more than just a product launch—it’s a statement. It signals that altcoins are maturing beyond speculative plays and entering the realm of serious financial instruments.

While regulatory approval remains uncertain, the mere act of filing pushes the conversation forward. Whether or not this specific ETF gets approved, it opens doors for others to follow—and brings us one step closer to a future where crypto is fully integrated into mainstream portfolios.

For investors, the takeaway is clear: diversification through regulated crypto vehicles is coming. And when it arrives, early awareness will be key.