Regulators Open Door: First Multi-Crypto ETP Gets Green Light

The U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of Grayscale's Digital Large Cap Fund (GDLC), marking the first U.S.-listed multi-cryptocurrency exchange-traded product (ETP) and a significant milestone in the evolution of digital asset investment vehicles. The fund, which tracks the CoinDesk Large Cap Select Index, offers exposure to five major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—providing investors with a diversified entry point into the crypto market. The approval was announced on September 17, 2025, following a months-long regulatory review that included a legal challenge by Grayscale after the SEC initially delayed its decision.

The GDLC will be traded on NYSE Arca under the ticker GDLC, with shares available for purchase and redemption through the exchange. The product operates with a basket structure, where creation and redemption of shares occur in units of 10,000 shares, and its net asset value (NAV) is $57.70 per share as of the approval date. The fund has over $915 million in assets under management (AUM), making it a substantial entrant in the emerging multi-asset ETP space. The inclusion of five major crypto assets—BTC, ETH, XRP, SOL, and ADA—reflects a strategic move to provide investors with a diversified exposure to the top-tier digital assets.

This approval coincides with the SEC's adoption of generic listing standards for ETPs, a regulatory shift designed to streamline the approval process for new products. Under the new framework, exchanges can register qualifying ETPs without needing prior approval for each individual product, significantly reducing the time and complexity involved in launching new offerings. This development is expected to accelerate the introduction of additional ETPs, with industry experts forecasting over 100 new crypto ETFs or ETPs in the next 12 months. The move is viewed as a catalyst for innovation in the crypto asset class, with the potential to attract both institutional and retail investors seeking regulated access to digital assets.

For Grayscale, the approval of GDLC represents a pivotal step in its strategy to expand its offerings beyond traditional over-the-counter (OTC) vehicles. The company has positioned GDLC as the first multi-cryptocurrency ETP in the U.S., leveraging its existing expertise in digital asset management to provide a structured investment product. The fund’s launch is expected to set a precedent for similar products, encouraging other asset managers to develop diversified crypto baskets to meet growing investor demand. The structure of GDLC also introduces operational efficiencies, including real-time price transparency and reduced tracking errors, which are typically issues with OTC-traded funds.

Market analysts have highlighted the potential for increased competition among ETP providers as a result of the SEC’s regulatory shift. With more firms likely to enter the space, cost efficiencies and product innovation are expected to intensify. The introduction of GDLC, along with the approval of spot Bitcoin and Ethereum ETPs earlier in 2024, marks a shift in the regulatory landscape, indicating a growing acceptance of crypto assets as a legitimate investment class. This trend is further supported by the increasing institutional interest in digital assets, with major financial institutions and asset managers integrating crypto into their investment strategies.

From an investor perspective, the launch of GDLC offers several benefits. The ETP structure provides greater liquidity and transparency compared to OTC-traded funds, while also enabling investors to manage their exposure to crypto assets without directly holding the underlying cryptocurrencies. The fund’s diversified composition also helps mitigate the risks associated with individual crypto assets, such as volatility and liquidity constraints. However, investors should remain aware of the inherent risks, including price fluctuations, regulatory changes, and operational risks associated with custody and market execution.

The SEC’s approval of GDLC reflects broader regulatory efforts to bring structure and clarity to the crypto market. The adoption of generic listing standards, combined with the increasing number of approved ETPs, signals a maturing regulatory environment that supports both innovation and investor protection. As more products enter the market, the competition for market share is expected to drive improvements in fees, operational efficiency, and investor services. This could lead to a more robust and accessible crypto asset market, where investors can confidently allocate capital to digital assets through a regulated and transparent framework.