Grayscale Digital Large Cap Fund has achieved a significant milestone by receiving approval from the SEC as the first multi-asset cryptocurrency exchange-traded product (ETP) in the United States. This fund offers exposure to five prominent digital assets: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), providing investors an opportunity to engage with these assets through traditional market channels.
This groundbreaking approval is facilitated by new generic listing standards aimed at accelerating the review process for crypto exchange-traded funds (ETFs) across major exchanges such as Nasdaq, NYSE Arca, and Cboe BZX. The new framework simplifies the approval timeline by eliminating the need for individual application assessments, allowing for a more rapid introduction of future products.
Peter Mintzberg, CEO of Grayscale, expressed gratitude to the SEC Crypto Task Force for their efforts in clarifying regulations. The fund currently boasts over $915 million in assets under management and a net asset value of $57.7 per share, indicating a strong demand from investors for multi-asset cryptocurrency products within established investment mechanisms.
The SEC Crypto Task Force, founded by acting Chair Mark Uyeda under the guidance of Commissioner Hester Peirce, signifies a notable shift from prior enforcement-focused strategies. The task force is dedicated to crafting clear regulatory frameworks that focus on innovation, rather than emphasizing litigation.
Bloomberg Senior ETF Analyst Eric Balchunas has projected that over 100 crypto ETFs could emerge within the next year, driven by the implementation of these generic listing standards. Historical trends in ETF launches have shown that new categories often lead to exponential growth in product introductions, signaling significant expansion potential for the crypto market.
This regulatory advancement aligns with rising anticipation for an “altseason,” a period where alternative cryptocurrencies tend to outperform Bitcoin. Coinbase has forecasted that a full-scale altcoin season may commence in September, supported by historical trends and current market dynamics.
Chair Paul Atkins highlighted the importance of increasing investor choice and fostering innovation through streamlined listing processes. This development is expected to reduce barriers to accessing digital assets within the United States’ capital markets, potentially drawing in billions of dollars in new institutional investment.
In recent news, Bitcoin competitor BNB reached an all-time high of $1,000 following a cut in U.S. Federal Reserve interest rates, illustrating the volatile yet dynamic nature of the cryptocurrency market.
