SEC's Generic Listing Standards Enable First U.S. Multi-Crypto ETP, Reshaping Investor Access

The U.S. Securities and Exchange Commission (SEC) has approved Grayscale’s Digital Large Cap Fund (GLDC), marking the first U.S. multi-asset cryptocurrency exchange-traded product (ETP) to receive regulatory clearance. The ETP provides investors with exposure to Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA) under a newly established framework of generic listing standards. This development represents a pivotal shift in the U.S. crypto market, offering institutional and retail investors a streamlined, regulated pathway to diversify their crypto holdings without directly managing digital assets.

The GLDC fund, which currently holds over $915 million in assets under management, will trade on major exchanges like Nasdaq and NYSE Arca, enabling broader access to digital assets through traditional investment platforms. Grayscale CEO Peter Mintzberg emphasized the milestone, calling it a “first-of-its-kind” achievement for the industry and crediting the SEC’s Crypto Task Force for fostering regulatory clarity. The task force, established in January 2025, has been instrumental in accelerating approvals by standardizing reviews for spot crypto ETPs, reducing barriers for issuers.

The approval aligns with growing market optimism for an “altcoin season,” a period historically characterized by outperformance of alternative cryptocurrencies relative to Bitcoin. Coinbase Institutional’s research team predicted a “full-scale altcoin season” beginning in September, citing rising open interest dominance in altcoins and historical market cycles. Analysts suggest the GLDC’s launch could amplify demand for altcoins, potentially driving liquidity and price momentum in these assets.

The SEC’s generic listing standards, which underpin the GLDC’s approval, streamline the ETP listing process by allowing exchanges to bypass individualized reviews for compliant products. This framework, introduced by SEC Chair Paul Atkins, aims to foster innovation while maintaining investor protections. The move has already triggered a surge in crypto ETF filings, with over 92 applications pending as of September 2025. Bloomberg Intelligence’s James Seyffart anticipates a wave of new crypto ETPs within months, potentially exceeding 100 products in the next year.

Regulatory momentum has also shifted the industry’s focus toward institutional adoption. The GLDC’s structure—combining custody, rebalancing, and regulatory compliance under a single vehicle—reduces operational complexity for investors. Market participants note that the fund’s approval follows a landmark 2023 appellate court ruling that rebuked the SEC for inconsistent treatment of crypto ETF proposals. This legal precedent, coupled with the Crypto Task Force’s policy reforms, signals a departure from the enforcement-heavy approach under former Chair Gary Gensler.

The approval of GLDC underscores the SEC’s evolving stance on crypto regulation, balancing innovation with investor safeguards. While the fund’s success will depend on market dynamics and liquidity, its launch sets a precedent for future multi-asset products. Analysts caution that regulatory scrutiny of volatile or niche assets—such as meme coins and leveraged strategies—may persist, but the broader framework opens the door for diversified crypto exposure.

Source: [1] title1 (https://web.ourcryptotalk.com/news/sec-crypto-etp-approval-grayscale) [2] title2 (https://cryptonews.com/news/sec-approves-grayscales-multi-crypto-fund-amid-broader-etf-push/) [3] title3 (https://cointelegraph.com/news/sec-first-us-multi-crypto-etp-grayscale-ceo) [4] title4 (https://www.coindesk.com/policy/2025/09/17/sec-makes-spot-crypto-etf-listing-process-easier-approves-grayscale-s-large-cap-crypto-fund) [5] title5 (https://hodlfm.com/regulation/sec-approves-grayscales-multi-crypto-fund-signaling-broader-etf-momentum/) [6] title6 (https://cardanofeed.com/sec-approval-could-pave-way-for-grayscales-first-u-s-multi-asset-etp-with-bitcoin-ethereum-xrp-solana-cardano-947) [7] title7 (https://mycryptoparadise.com/sec-breaks-dam-generic-crypto-etf-listings-approved-altcoin-season-fears-ignite/) [8] title8 (https://www.bitcoininsider.org/article/287039/sec-gives-green-light-first-multi-asset-crypto-etp-us)