SEC Greenlights Grayscale Multi-Crypto ETF: Unlocking Altcoin Access!
Grayscale’s Digital Large Cap Fund Transforms into First Multi-Asset Crypto ETF in the U.S.
The U.S. Securities and Exchange Commission (SEC) has granted approval for Grayscale to transition its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF). This landmark decision marks the inaugural instance of a multi-asset cryptocurrency fund being listed on a U.S. public exchange. The ETF will be available on NYSE Arca and will mirror the CoinDesk Large Cap Select Index, which includes leading digital currencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA).
A New Era for Crypto Investment
The SEC’s endorsement, finalized between July 1 and 2, 2025, represents a significant shift in regulatory attitudes and offers a breakthrough for investors looking for diversified exposure to cryptocurrencies through conventional financial products. Previously, GDLC was accessible only to accredited investors as a closed-end trust, but it will now be available to all retail investors through standard brokerage accounts.
Enhanced Structure and Accessibility
Grayscale’s newly approved ETF introduces several improvements in its structure and accessibility. The ETF format allows for in-kind creation and redemption, daily net asset value (NAV) pricing, and narrower trading spreads. These enhancements aim to resolve issues that affected the original trust format, such as ongoing NAV discounts and limited liquidity.
The fund’s asset allocation consists of roughly 80% Bitcoin, 11% Ethereum, 4.8% XRP, 2.7% Solana, and 0.8% Cardano. This diversified approach reflects the market capitalizations of major cryptocurrencies while indicating a cautious regulatory acceptance of altcoins.
As of June 30, GDLC managed assets ranging from $755 million to $775 million. The shift to an ETF is anticipated to attract new investments from both institutional and retail investors who were previously deterred by the fund’s over-the-counter structure and liquidity constraints.
Paving the Way for altcoin ETFs
Grayscale’s successful conversion of GDLC is seen as a regulatory benchmark for the potential expansion of altcoin ETFs. Analysts believe that the limited exposure to assets like XRP, SOL, and ADA—previously under legal scrutiny—makes this ETF a cautious yet significant advancement.
This approval comes at a time of increased activity in the crypto ETF market, following the earlier launches of spot Bitcoin and Ethereum ETFs. Market observers expect that this development could expedite the SEC’s review of future single-asset ETFs or broader index funds that incorporate altcoins.
Grayscale’s initiative may also stimulate competitive efforts from other issuers, such as Bitwise, Hashdex, and VanEck, who are exploring similar multi-asset or altcoin-focused fund structures.
The GDLC ETF is set to commence trading on NYSE Arca in the upcoming weeks, pending the completion of final listing procedures. Investors will be keenly monitoring its performance and market reception as a potential indicator for the next wave of regulated cryptocurrency products in the United States.
