SEC's Crypto Rules Spur First Multi-Cap ETP Era

Grayscale’s CoinDesk Crypto 5 ETF (GDLC) debuted on NYSE Arca on September 19, 2025, with a trading volume of $22 million, marking the first U.S.-listed multi-crypto asset exchange-traded product (ETP) Grayscale CoinDesk Crypto 5 ETF (GDLC)^[4]. The fund, which tracks the CoinDesk 5 Index (CD5), offers investors diversified exposure to Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—assets representing over 90% of the cryptocurrency market’s capitalization Grayscale's GLDC: The First Multi-Crypto Asset ETF in the US^[1]. The ETF’s launch followed SEC approval on September 17, 2025, under the regulator’s new generic listing standards for commodity-based ETPs, which streamlined the approval process for crypto products Grayscale’s Ambitious Move: The Future of ADA and XRP ETFs in …^[7]. This regulatory shift, described by SEC Chair Paul Atkins as a move to “maximize investor choice and foster innovation,” reflects a broader acceptance of digital assets within traditional finance Grayscale’s Ambitious Move: The Future of ADA and XRP ETFs in …^[7].

The GDLC fund, previously known as the Grayscale Digital Large Cap Fund, holds assets under management (AUM) of $931.6 million as of September 18, 2025, with a total expense ratio of 0.59% Grayscale CoinDesk Crypto 5 ETF (GDLC)^[4]. Its portfolio is weighted by market capitalization, with Bitcoin comprising 72.09% of holdings, followed by Ethereum (17.08%), XRP (5.67%), Solana (4.12%), and Cardano (1.04%) Grayscale CoinDesk Crypto 5 ETF (GDLC)^[4]. The fund rebalances quarterly to align with the CD5 Index, which excludes stablecoins, memecoins, and privacy-focused tokens to mitigate regulatory and liquidity risks Grayscale Digital Large Cap Fund LLC 2025 Form 10-K and NYSE …^[3]. Grayscale’s CEO, Peter Mintzberg, highlighted the ETF’s role in “ushering in the age of crypto index investing,” emphasizing its ability to simplify access to digital assets for both institutional and retail investors Grayscale's GLDC: The First Multi-Crypto Asset ETF in the US^[1].

The SEC’s approval of GDLC came amid a surge in demand for regulated crypto products, driven by institutional interest and evolving regulatory clarity. The agency’s generic listing standards, adopted in July 2025, reduced bureaucratic hurdles for crypto ETPs, enabling faster market access for products meeting predefined risk and liquidity criteria Grayscale’s Ambitious Move: The Future of ADA and XRP ETFs in …^[7]. This development is expected to catalyze a wave of new crypto ETFs, with analysts predicting over 100 launches in the coming year Grayscale's GLDC: The First Multi-Crypto Asset ETF in the US^[1]. The GDLC’s success has already spurred momentum for altcoin ETFs, as seen in recent filings by firms like 21Shares and Bitwise for XRP-focused products . Bloomberg analyst James Seyffart noted that tokens with strong liquidity and regulatory alignment—such as XRP and ADA—could become focal points for future ETFs, building on GDLC’s precedent Bloomberg Analyst Reveals Why XRP and ADA ETFs Are Poised …^[6].

Market reactions to GDLC’s debut underscored its potential to reshape crypto investing. The fund’s net asset value (NAV) per share rose 81.11% year-to-date through August 2025, outperforming Bitcoin’s 69.8% gain during the same period Grayscale Digital Large Cap Fund LLC 2025 Form 10-K and NYSE …^[3]. This outperformance, attributed to the fund’s altcoin exposure, highlights the diversification benefits of multi-asset strategies. Institutional investors, in particular, have shown interest in GDLC as a compliant vehicle for portfolio diversification, with the fund’s custodial partnership with Coinbase Custody Trust Company further enhancing institutional confidence Grayscale's GLDC: The First Multi-Crypto Asset ETF in the US^[1]. Meanwhile, retail investors gained a simplified entry point into crypto through traditional brokerage accounts, bypassing the complexities of direct digital asset management Grayscale's GLDC: The First Multi-Crypto Asset ETF in the US^[1].

Looking ahead, the GDLC’s launch is poised to accelerate the integration of cryptocurrencies into mainstream finance. The SEC’s regulatory framework, combined with growing institutional adoption, could drive billions in new capital into the crypto market, particularly for altcoins like Solana and Cardano, which have already seen price increases post-GDLC approval Grayscale's GLDC: The First Multi-Crypto Asset ETF in the US^[1]. However, challenges remain, including the fund’s 2.5% sponsor fee—higher than many traditional equity ETFs—and the potential for market fragmentation as new ETPs emerge. Grayscale’s leadership transition, with Peter Mintzberg succeeding Michael Sonnenshein, signals a strategic pivot toward aligning with traditional finance norms, a move likely to influence the competitive landscape for crypto asset managers Grayscale Digital Large Cap Fund LLC 2025 Form 10-K and NYSE …^[3].