02.07.2025 04:34

The U.S. Securities and Exchange Commission (SEC) has made history by approving the transformation of Grayscale's Digital Large Cap Fund into a multi-cryptocurrency exchange-traded fund (ETF), a landmark decision for the American crypto market. This marks the first time a basket of multiple cryptocurrencies will trade as an ETF in the United States, significantly expanding investor access to the digital asset landscape.


The ETF will encompass five of the largest cryptocurrencies by market capitalization: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). At the time of approval, the fund's allocation mirrored the market dominance of these assets, with approximately 80% in Bitcoin, 11% in Ethereum, and the remaining percentage distributed among XRP, Solana, and Cardano. The fund, boasting non-GAAP assets of roughly $775 million as of June 30th, previously traded over-the-counter (OTC) under the ticker GDLC; it will now transition to the NYSE Arca exchange, facilitating continuous trading and on-exchange creation and redemption of shares.


This regulatory green light is not merely an isolated event but represents a broader shift in the SEC's approach to crypto-asset regulation. The approval includes amendments to NYSE Arca Rule 8.500-E, specifically accommodating trust units issued by limited liability companies and index-based portfolios. Furthermore, the SEC's confirmation that the exchange's robust surveillance and asset quality measures fulfill the requirements of Section 6(b)(5) of the Securities Exchange Act reinforces its commitment to market integrity and fraud prevention.


This approval has significant implications for the wider crypto ETF market. Industry analysts anticipate the imminent launch of a spot Solana ETF, and other firms, such as Bitwise, have already submitted applications for similar products. The SEC's decision thus paves the way for a potential influx of new crypto ETFs, potentially accelerating the mainstream adoption of digital assets within the U.S. financial system. Despite the approval, it's worth noting that the prices of all five cryptocurrencies included in the ETF experienced a decrease following the announcement.