The U.S. Securities and Exchange Commission (SEC) has granted approval for Grayscale Investments’ Digital Large Cap Fund (GDLC) to operate as an Exchange-Traded Fund (ETF). This landmark endorsement signifies a major advancement for the regulated management of crypto assets, providing investors diversified exposure to prominent cryptocurrencies.
The GDLC ETF portfolio will consist primarily of Bitcoin (constituting over 80% of holdings) and Ethereum (representing approximately 11%), supplemented with assets including XRP, Solana, and Cardano. This diversified structure offers investors broad exposure to the leading segment of the cryptocurrency market.
This approval underscores the SEC’s emerging regulatory approach favoring diversified crypto funds operating within established oversight frameworks. Analysts point to Grayscale’s pivotal legal challenge victory against the SEC in 2023 as a key factor reshaping regulator attitudes concerning crypto ETF approvals.
The introduction of the GDLC ETF is anticipated to enhance institutional access and liquidity within cryptocurrency markets. Market observers predict this move will likely trigger a wave of new crypto ETF applications and launches.
While signaling progress, the SEC maintains a cautious stance, emphasizing prerequisites of significant market capitalization and liquidity for underlying assets. Asset managers are expected to explore launching additional diversified crypto ETFs meeting these evolving regulatory considerations.