SEC Approves Conversion of Grayscale Fund with $750m in Assets into ETF, as REX-Osprey Solana Staking ETF Goes Live
REX Shares has launched the first-ever Solana staking ETF in the U.S., recording over $8m volume in minutes.
- Published: Jul 2, 2025 at 14:48
- Edited: Jul 2, 2025 at 14:48
On July 1, 2025, the U.S. Securities and Exchange Commission (SEC) approved a proposed rule change allowing NYSE Arca to list and trade shares of the Grayscale Digital Large Cap Fund (GDLC) as a spot exchange-traded fund (ETF). The approval follows Grayscale’s April 1, 2025, submission of Form S-3 to register the shares under the Securities Act of 1933.
The fund will rebrand as the “Grayscale CoinDesk Crypto 5 ETF.” It will offer investors exposure to a diversified mix of five leading cryptocurrencies: Solana ($SOL), Bitcoin (BTC), Ethereum ($ETH), $XRP, and Cardano ($ADA). The fund will track the CoinDesk 5 Index (CD5), designed to measure the performance of the five largest and most liquid digital assets traded in USD.
Brief History of the GDLC Fund
Launched in 2018 as a closed-end fund, GDLC originally served accredited investors. Its transition into a publicly traded ETF on NYSE Arca will expand access to a broader investor base. As of July 1, 2025, the fund held above $750 million in assets under management. It previously carried a 2.5% expense ratio and often traded at a discount or premium due to structural constraints inherent in closed-end funds.
This conversion follows in the footsteps of Grayscale’s earlier efforts to convert the Grayscale Bitcoin Trust and Grayscale Ethereum Trust into ETFs, which were made possible by legal and regulatory milestones, including Grayscale’s successful lawsuit against the SEC in 2023.
ETF Composition and Allocation
The ETF will initially adopt the same asset allocation structure as the former GDLC fund:
The fund will undergo quarterly rebalancing to align with the CoinDesk 5 Index, ensuring it remains representative of current market capitalizations and liquidity profiles. This dynamic management approach allows the ETF to adjust exposure as the digital asset landscape evolves.
According to the updated S-3 filing submitted on June 26, 2025, the trust will enter into a new administration agreement with BNY Mellon. BNY Mellon will provide administrative services, including NAV calculations, financial reporting, and compliance functions. These responsibilities aim to bolster investor protection and ensure operational transparency.
REX-Osprey Launch and Solana ETF Momentum
The REX-Osprey Solana ETF, which includes staking, launched today under the ticker $SSK and represents a new frontier for crypto ETFs. It recorded over $8 million in trading volume within its first 20 minutes. Unlike the recent wave of spot BTC and ETH ETFs registered under the 1933 Act, the new REX-Osprey ETF falls under the more rigorous Investment Company Act of 1940. That distinction means a qualified custodian must hold assets, and Anchorage is currently the only federally regulated bank approved to both custody and stake digital assets.
The ETF offers direct exposure to SOL, with staking rewards passed through to investors. The SEC appears to be accelerating its approval process, signaling a possible shift in approach toward digital asset products. This launch could have implications for the nine pending Solana spot ETF applications, potentially paving the way for more staking-enabled and asset-specific funds.
Implications for Crypto ETF Landscape
This is the first time the SEC has allowed a spot ETF tied to multiple cryptocurrencies, rather than a single asset, such as Solana. Its approval suggests a path forward for other asset managers seeking to launch diversified crypto ETFs.
ETF analyst James Seyffart had expected the fund’s approval, citing its composition and alignment with existing frameworks.
ETF Store President Nate Geraci also predicted the decision, interpreting Grayscale’s amended filings as evidence of constructive dialogue with the SEC.
Former Fox Business Journalist Eleanor Terrett reported that the SEC is exploring a generic listing standard for token-based ETFs. This standard could allow issuers to bypass the 19b-4 process by meeting specific criteria and filing an S-1 registration statement. James Seyffart called the move a positive step that would provide long-needed clarity, aligning with research he and fellow analyst Eric Balchunas have published.
Looking Ahead
The fund is expected to begin trading under its new name, Grayscale CoinDesk Crypto 5 ETF, once the registration statement becomes effective. Final coordination with NYSE Arca and supporting infrastructure remains ongoing. The fund’s listing will mark the start of a new chapter for diversified crypto investment vehicles in the U.S. capital markets.
While the SEC's approval of the Grayscale CoinDesk Crypto 5 ETF marks an essential step toward broader acceptance of multi-asset crypto ETFs, today's launch of the REX-Osprey Solana + Staking ETF adds further momentum. As the first U.S.-listed ETF to offer staking rewards within a regulated structure, it introduces a new model for yield-generating digital asset products. Together, these developments may influence the direction of future offerings in this rapidly evolving space.
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