SEC Greenlights First Multi-Crypto ETP in US: Grayscale
SEC Approves First US Multi-Crypto ETP: Grayscale's GLDC Cleared
The US Securities and Exchange Commission (SEC) has approved the first multi-asset cryptocurrency exchange-traded product (ETP) in the United States. Grayscale’s Digital Large Cap Fund (GLDC) has been cleared for listing, marking a significant step for diversified crypto investments.
The fund will provide exposure to five major cryptocurrencies: Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL), and Cardano (ADA). The SEC filing, disclosed Wednesday, follows the previous approval of spot Bitcoin ETFs and signals growing acceptance of digital assets by regulators.
A multi-asset crypto ETP offers traditional investors a straightforward method to invest in a basket of cryptocurrencies without the complexities of managing multiple exchange accounts or directly purchasing individual tokens.
Anticipation of Altcoin Season
This approval arrives amid increasing speculation about an impending altcoin season, a period characterized by altcoins outperforming Bitcoin.
On August 15, Coinbase suggested that September could mark the beginning of a “full-scale altcoin season”, based on historical market patterns.
David Duong, Coinbase Institutional’s global head of research, stated in a monthly outlook report, “We think current market conditions now suggest a potential shift towards a full-scale altcoin season as we approach September.”
Grayscale's Reaction and SEC's New Listing Standards
The SEC approved Grayscale’s Digital Large Cap Fund under new generic listing standards. These standards are designed to expedite the review process for spot crypto ETFs on exchanges like Nasdaq, NYSE Arca, and Cboe BZX by removing the need for individual assessment of each application.
“Grayscale Digital Large Cap Fund $GDLC was just approved for trading along with the Generic Listing Standards,” Grayscale CEO, Peter Mintzberg, posted on X. He added that the team is committed to launching 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 thanked the SEC Crypto Task Force, highlighting their efforts to provide regulatory clarity for the crypto industry.
Established on January 21, the SEC Crypto Task Force, under Commissioner Hester Peirce, aims to develop a clear regulatory framework for crypto assets.
The creation of this task force marks a shift from the SEC’s previous enforcement-focused approach under former Chair Gary Gensler, during whose tenure the SEC initiated lawsuits against major crypto companies like Ripple Labs, Terraform Labs, Binance, Coinbase, and Kraken.