In a landmark decision for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has approved the first-ever multi-crypto exchange-traded product (ETP). The agency greenlit Grayscale’s Digital Large Cap Fund (GDLC), signaling a significant shift in regulatory momentum and a major win for digital asset adoption.
What is in the Grayscale GDLC Fund ETP?
The newly approved fund offers investors a diversified basket of major cryptocurrencies through a single, regulated product. GDLC provides exposure to five leading digital assets:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP (XRP)
- Solana (SOL)
- Cardano (ADA)
This approval is a reversal from the SEC’s stance just months ago when it delayed Grayscale’s bid to convert the fund from an over-the-counter product to a fully listed ETP on the NYSE Arca exchange.
A Streamlined Path for Future Crypto ETFs
This move is part of a broader regulatory shift. The SEC simultaneously authorized new, generic listing standards for crypto ETFs. This change effectively streamlines the approval process, making it easier for other issuers to launch similar products.
SEC Chair Paul Atkins stated that this helps “maximize investor choice and foster innovation.”
Industry analysts are thrilled. Bloomberg’s Eric Balchunas noted, “The last time this type of approval happened, ETF launches tripled.” He predicts we could see “more than 100 new crypto ETFs within a year.”
A Flood of New Crypto ETF Filings Has Begun
The approval has already triggered a wave of new filings from other issuers. A new batch of applications recently landed at the SEC, showcasing a growing appetite for even more niche products.
These new filings include ETFs tied to:
- Avalanche (AVAX) infrastructure
- The meme coin Bonk (BONK)
- Basis trade strategies for BTC and ETH
- Leveraged and income-focused funds for Orbs, Litecoin, and Sui
According to Nate Geraci of the ETF Institute, over 92 crypto ETF applications are now pending, with key deadlines in October and November. This suggests the market is on the cusp of an explosion of new digital asset investment products.
While Avalanche-based products may have a good chance, analysts warn that meme coin and complex strategy ETFs could face more regulatory pushback due to concerns over volatility and liquidity.
This landmark approval for a multi-crypto fund marks a turning point, potentially opening the floodgates for broader institutional and retail participation in the digital asset market.
