Regulators Greenlight Grayscale’s Crypto ETP, Shifting Market Access

The U.S. Securities and Exchange Commission (SEC) has approved Grayscale’s Grayscale Digital Large Cap Fund (GDLC), marking the first multi-crypto asset exchange-traded product (ETP) in the market. The fund offers exposure to five major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This approval follows the SEC’s broader initiative to fast-track crypto-related products and comes alongside the agency’s adoption of generic listing standards for crypto ETFs, which is expected to streamline the approval process for similar offerings.

The GDLC’s asset allocation reflects a concentrated exposure to BTC, which accounts for 72.23% of the fund, followed by ETH at 12.17%. XRP, SOL, and ADA make up the remaining 5.62%, 4.03%, and 1%, respectively. The fund provides a diversified way for investors to gain exposure to digital assets without the need to directly store, purchase, or hold the underlying cryptocurrencies.

Grayscale’s CEO, Peter Mintzberg, announced the approval on the social media platform X, emphasizing the significance of the SEC’s decision in enhancing regulatory clarity and fostering innovation in the crypto space. In July, the SEC initially approved Grayscale’s application to convert its over-the-counter product into a tradable ETP but later issued a pause order, reportedly for internal procedural review. The company argued that the pause was detrimental to investors and expressed confidence that the product would eventually be launched.

The market reaction to the news was positive across the included cryptocurrencies. BTC briefly surged to $117,900 before retreating to $117,300, while ETH reached $4,602. Both assets recorded notable gains over the past 24 hours and seven days. XRP, SOL, and ADA also saw upward movement, with SOL experiencing the most significant weekly increase of 10%.

Analysts have offered varying forecasts based on recent performance. BTC is seen as potentially reaching $160,000 by year-end if it successfully breaks the $120,000 level. ETH, meanwhile, is expected to climb toward $10,000 within its current cycle. SOL and XRP have been projected to reach $4,000 and between $5,000 and $15,000, respectively, by the end of the cycle.

The GDLC approval is viewed as a potential catalyst for the crypto market, with Bloomberg senior ETF analyst Eric Balchunas suggesting it could lead to a surge in new ETF launches, potentially exceeding 100 within the next 12 months. This development underscores the SEC’s increasing openness to structured crypto products and signals a possible shift toward more accessible and regulated investment vehicles for digital assets.