In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of Grayscale Investments’ Digital Large Cap Fund (GDLC). This is marking the debut of the first multi-asset spot crypto exchange-traded product (ETP) in the United States.
The fund tracks the CoinDesk 5 Index, with a portfolio allocation of approximately 70% Bitcoin (BTC), 20% Ethereum (ETH), and the remainder split among XRP, Solana (SOL), and Cardano (ADA). This approval, paired with new generic listing standards, signals a seismic shift in the regulatory landscape for cryptocurrencies.
The decision contrasts sharply with the Biden-era SEC’s cautious approach. His approach included a notable lawsuit against Ripple (XRP’s issuer). That concluded in July 2023 with a ruling allowing limited XRP sales. Under the Trump administration, the SEC has pivoted to foster U.S. leadership in the crypto space, aligning with the President’s March 2025 proposal for a U.S. Crypto Reserve. This policy shift has already spurred market optimism, with Cardano experiencing a 60% price surge post-announcement, according to Coinbase data.
The introduction of generic listing standards, effective as of September 17, streamlines the approval process for future spot crypto ETFs. It is reducing the timeline from 240 days to 75 days. This change, supported by regulated futures contracts for Bitcoin and Ethereum traded for over six months, opens the door for a broader range of cryptocurrencies to enter the institutional investment arena. Analysts estimate this could unlock $50-100 billion in capital, drawing from BlackRock’s 2024 ETF inflow projections.
The inclusion of altcoins like XRP, Solana, and Cardano—previously mired in regulatory uncertainty—underscores a strategic diversification effort. This move challenges the dominance of Bitcoin and Ethereum in crypto ETPs. It is offering investors regulated exposure to a diversified digital asset portfolio. The approval of GDLC may well redefine the future of cryptocurrency investment, blending innovation with regulatory oversight in a rapidly evolving financial landscape.
