The U.S. Securities and Exchange Commission (SEC) has approved Grayscale Investments' conversion of its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF), marking the first-ever multi-asset crypto ETF authorization. The fund will track the CoinDesk Large-Cap Select Index and hold Bitcoin (BTC) at 80.2%, Ethereum (ETH) at 11.3%, Solana (SOL) at 2.7%, XRP at 4.8%, and Cardano (ADA) at 0.81%.
The approval follows Grayscale's 2023 legal victory that forced the SEC to reconsider its rejection of crypto ETFs. Listed on NYSE Arca, the ETF eliminates previous arbitrage issues and provides daily NAV calculations. Industry analysts suggest this signals regulatory openness and increases the likelihood of future altcoin-specific ETFs, with Bloomberg experts noting 95% approval odds for Solana, XRP, and Cardano standalone products.
The SEC is reportedly considering streamlined processes for future crypto ETFs, potentially using standard S-1 forms with 75-day reviews instead of traditional 19b-4 filings.