Grayscale Investments has recently received approval from the US Securities and Exchange Commission (SEC) to list its Digital Large Cap Fund (GDLC) as an exchange-traded fund (ETF). This development is set to revolutionize mainstream crypto investment, offering investors exposure to a diversified portfolio of five of the most actively traded tokens – Bitcoin, Ethereum, XRP, Cardano, and Solana – through a single regulated channel.
The approval, which came just hours after Grayscale’s CEO Peter Mintzberg announced that the product had been cleared for launch on the NYSE Exchange, marks a significant milestone for the industry. Mintzberg emphasized the importance of the regulatory clarity provided by the SEC’s crypto task force, highlighting the improved cooperation between industry and regulators.
This move represents a significant turnaround from July when the SEC delayed its decision on allowing Grayscale to upgrade GDLC from an over-the-counter vehicle to a listed ETF on NYSE Arca. However, the regulator’s decision to grant approval on an “accelerated basis” and adopt generic listing standards designed to streamline the process for future crypto ETFs indicates a positive shift in the regulatory landscape.
Market analysts view this decision as a potential inflection point for multi-asset crypto funds, with basket-style ETFs expected to become the second- or third-largest category of digital asset products, following single-asset Bitcoin ETFs. Strong investor interest in crypto ETFs over the past year, with Bitcoin-focused funds managing over $100 billion in assets and Ethereum funds attracting over $13 billion in inflows, bodes well for the success of GDLC.
Grayscale’s website reveals that the fund’s net asset value is $58 per share, with assets under management exceeding $931 million. The fund holds 72% of its assets in Bitcoin, 17% in Ethereum, approximately 6% in XRP, 4% in Solana, and 1% in Cardano. With these impressive figures and the potential for meaningful inflows once trading begins, GDLC is poised to make a significant impact on the crypto investment landscape.
Overall, the approval of GDLC as an ETF by the SEC signals a positive step towards mainstream adoption of cryptocurrencies and offers investors a convenient and regulated way to access a diversified portfolio of digital assets. This development underscores the growing acceptance of crypto assets in traditional financial markets and sets the stage for further innovation in the sector.