The US Securities and Exchange Commission (SEC) approved the first multi-asset cryptocurrency exchange-traded product (ETP) in the United States, clearing Grayscale’s Digital Large Cap Fund (GLDC) for listing.
The fund will offer exposure to five of the world’s largest cryptocurrencies: Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA). The approval, disclosed in a filing on Wednesday, marks a milestone for the digital asset industry and follows the success of US spot Bitcoin exchange-traded funds (ETFs).
A multi-asset crypto ETP gives traditional investors an easier way to gain exposure to several cryptocurrencies without opening accounts on exchanges or purchasing the tokens directly.
Related: Bitcoin whale awakens after 12 years, transfers 1,000 BTC before US Fed meeting
The filing came amid growing investor expectations for an altcoin season, a period seen in each bull market when altcoins outperform Bitcoin’s price momentum.
On Aug. 15, Coinbase predicted a “full-scale altcoin season” starting in September, citing historical chart patterns.
“We think current market conditions now suggest a potential shift towards a full-scale altcoin season as we approach September,” Coinbase Institutional’s global head of research, David Duong, wrote in a monthly outlook report.
Related: Privacy is ‘constant battle’ between blockchain stakeholders and state
Grayscale crypto ETP approved under new SEC generic listing standards
The SEC approved Grayscale’s product under new generic listing standards meant to speed up reviews for spot crypto ETFs on exchanges such as the Nasdaq, NYSE Arca and Cboe BZX. The decision means each application need not be assessed individually, speeding up approvals.
“Grayscale Digital Large Cap Fund $GDLC was just approved for trading along with the Generic Listing Standards,” said Grayscale CEO, Peter Mintzberg, in a Thursday X post, adding that the team is working to launch the product “expeditiously.”
“The Grayscale team is working expeditiously to bring the *FIRST* multi #crypto asset ETP to market with Bitcoin, Ethereum, XRP, Solana, and Cardano.”
Mintzberg also issued a thank you to the SEC Crypto Task Force for their “unmatched efforts in bringing the regulatory clarity our industry deserves.”
The SEC Crypto Task Force was established on Jan. 21 by acting SEC Chair Mark Uyeda to develop a clear regulatory framework for crypto assets under the leadership of Commissioner Hester Peirce, often referred to as “Crypto Mom,” Cointelegraph reported at the time.
Industry watchers saw the task force’s creation as a significant shift from the SEC’s previous enforcement-heavy approach to the crypto industry under the leadership of former Chair Gary Gensler.
Under Gensler’s leadership, the SEC initiated lawsuits against some of the biggest companies in the industry, including suing Ripple Labs in 2020, Terraform Labs in 2022 and cryptocurrency exchanges Binance, Coinbase and Kraken in 2023. Those cases cost the industry billions in legal fees.
Magazine: XRP to retest highs? Bitcoin won’t go sideways for long: Hodler’s Digest, Sept. 7 – 13
