TLDR
- Grayscale’s GDLC Fund is approved to trade on NYSE Arca with five major cryptos.
- SEC’s approval streamlines crypto ETF listings, reducing the approval time.
- Bitcoin makes up 72% of the GDLC Fund’s assets, followed by Ethereum.
- SEC’s new crypto ETF listing standards could speed up over 100 ETF launches.
The U.S. Securities and Exchange Commission (SEC) has given the green light for Grayscale’s Digital Large Cap Fund (GDLC) to list and trade on the NYSE Arca. This approval marks a major milestone for Grayscale and its investors, allowing exposure to top cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano in a regulated exchange-traded product (ETP). This development comes amid the SEC’s efforts to streamline the approval process for crypto-related funds.
SEC’s Approval of GDLC Fund
Grayscale’s Digital Large Cap Fund (GDLC) received approval from the SEC to list on the NYSE Arca. This approval comes after several months of delays. The fund, which offers exposure to five major cryptocurrencies, will soon be available for trading. These cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
According to Grayscale CEO Peter Mintzberg, this approval marks GDLC as the first multi-crypto asset exchange-traded product (ETP) in the market. Grayscale’s GDLC Fund holds over $915 million in assets, with Bitcoin making up the largest portion at 72% of the fund. Ethereum follows with a 17% share, while XRP, Solana, and Cardano make up smaller portions.
Grayscale has been working closely with the SEC for approval, particularly after the SEC delayed the listing of GDLC in July. At that time, the SEC requested additional review before making a final decision. However, with this approval, GDLC is now set to begin trading on the NYSE Arca in the coming weeks.
Changes to SEC’s Crypto ETF Listing Process
The approval of GDLC comes at a time when the SEC has also approved new generic listing standards for crypto ETFs. These standards aim to expedite the approval process for crypto-related exchange-traded funds (ETFs) and reduce barriers to market entry. SEC Chair Paul Atkins stated that the new standards would “maximize investor choice and foster innovation by streamlining the listing process.”
Previously, the approval timeline for crypto ETFs was lengthy, but the new regulations will allow exchanges to list commodity-based trust shares for digital assets like Bitcoin and Ethereum. The SEC’s decision to adopt these new standards could pave the way for more crypto ETFs to launch in the coming months, offering broader access to digital assets through regulated financial products.
The Future of Crypto ETFs
The SEC’s recent decision to approve new listing standards for crypto ETFs signals an accelerated timeline for crypto-related financial products. With the ability to list commodities like digital currencies, experts expect that numerous crypto ETFs will be launched in the next 12 months. According to Bloomberg’s Eric Balchunas, the number of new crypto ETFs could exceed 100 in the near future.
This move by the SEC also follows Grayscale’s legal efforts, which have contributed to pushing the agency to approve more crypto-related products. Nate Geraci, a well-known ETF expert, highlighted that Grayscale’s lawsuit has played a significant role in influencing the SEC’s stance on crypto ETFs. The approval of GDLC could set the stage for additional multi-asset crypto ETFs in the future.
As the regulatory environment around crypto assets continues to evolve, the approval of Grayscale’s GDLC Fund could mark just the beginning of broader access to crypto assets through regulated financial products. The faster approval process enabled by the SEC’s new listing standards will likely encourage more crypto investments within the U.S. capital markets.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
