Grayscale proposes the first US multi-crypto ETF, encompassing Bitcoin, Ethereum, Solana, Avalanche, and XRP.
In the US, the Blockchain Association says that SEC actions have cost crypto firms over $425 million in legal defenses since 2021, asking for regulatory clarity and leadership changes. Coinbase also says that the FDIC has advised banks to restrict crypto-related services, creating worries about law-abiding enterprises’ financial resources. Under new digital criminal regulations, Australia seized crypto assets.
In a groundbreaking step, US authorities are considering Grayscale’s application to establish an exchange-traded fund (ETF) with a broad basket of cryptocurrencies, including many major altcoins. The proposal to list Grayscale Digital Large Cap Fund (GDLC) on the New York Stock Exchange’s Arca platform might be the first multi-asset crypto ETF.
On Oct. 29, NYSE Arca requested GDLC’s listing from the SEC. The regulatory change would allow US national securities exchanges to trade multi-crypto ETFs for the first time. Grayscale said “[the] proposed rule change, if implemented, would be the first national securities exchange ruleset authorizing the listing and trading of shares of multi-crypto asset [ETFs].”
The GDLC Fund administers Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and XRP. This ETF, unlike many others, provides exposure to a variety of digital assets beyond BTC and ETH, making it a unique option for investors seeking regulated cryptocurrency diversification.
Despite managing considerable assets, the GDLC Fund, formed in 2018, is not on public markets. An estimated $534 million in assets under management as of Nov. 4.
Bitcoin, Ethereum, Solana, Avalanche, and XRP are among the fund’s top-performing cryptocurrencies. Grayscale is marketing GDLC as a unique ETF that exposes investors to high-potential altcoins by incorporating SOL, AVAX, and XRP.
On Nov. 4, the SEC published NYSE Arca’s rule change request in the federal register, giving it 240 days to approve the ETF. The clearance would be a milestone, possibly allowing diverse crypto ETFs to join the US market.
Grayscale competes with Hashdex and Franklin Templeton, who have proposed crypto ETFs. These funds concentrate on Bitcoin and Ethereum, unlike GDLC, which diversifies altcoins.
The popularity of multi-asset crypto ETFs implies investor tastes are changing as digital assets mature and diversify. Since January and July, single-asset BTC and ETH ETFs have been available, therefore index-based crypto ETFs are a logical evolution. These indexes mimic the efficiency and risk diversification of conventional equities indices like the S&P 500, making it easier for investors to invest in numerous cryptocurrencies.
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