The SEC approves Grayscale’s GDLC: first multi-asset crypto ETP and prospects for over 100 ETFs

The SEC has approved the conversion of the Grayscale Digital Large Cap Fund (GDLC) into an ETP traded on NYSE Arca. This marks the creation of the first U.S. multi-asset ETP with exposure to five cryptos: Bitcoin, Ether, XRP, Solana, and Cardano, and simultaneously, generic listing standards are adopted that will simplify the approval of future products, accelerating the launch of new ETFs. In this context, the U.S. regulatory framework makes progress that can impact the timing and operations of issuers.

According to the data collected by our team monitoring SEC filings, official communications, and major market feeds, the conversion process from OTC vehicle to ETP shows greater standardization in the required criteria. Industry analysts we consult with observe that the new listing criteria setup contributes to creating a broader pipeline of products, supporting the forecast of over 100 new crypto ETFs within the next 12 months.

What Has Been Approved: ETP GDLC and Key Features

The U.S. regulatory authority has authorized the transformation of the over-the-counter vehicle into an exchange-traded product. Grayscale, led by CEO Peter Mintzberg (became CEO on August 15, 2024), announced the news on X, defining GDLC as the first multi-crypto ETP listed in the USA. That said, the conversion also represents an operational test for implementing the new listing criteria.

• Name: Grayscale Digital Large Cap Fund (GDLC)
• Composition: Bitcoin (BTC), Ether (ETH), XRP, Solana (SOL) and Cardano (ADA)
• NAV per share: $57.7 (as of September 17, 2025)
• AUM: over $915 million
• Platform: NYSE Arca
• Announcement date: September 17, 2025

The ETP offers diversified exposure to a basket of large-cap digital assets. The fund’s rebalancing will follow the methodology chosen by the manager, with weights and other operational metrics updated on Grayscale’s official website. It should be noted that some details, such as the expense ratio and the exact percentages related to the tokens, will be disclosed in the updated prospectus.

Crypto Listing Standards: What Changes with the New Rules

The approval of GDLC coincides with the accelerated adoption of generic listing standards for crypto ETPs. In practice, exchanges will be able to list products that meet predefined requirements without having to request a review of each individual instrument, thus reducing procedural frictions and shortening the time to market launch. In effect, it is a mechanism that aims to standardize the most recurring steps.

This simplification generates greater regulatory certainty and positively impacts costs for investors, promoting a faster expansion of the offering. Yet, the concrete application will depend on the issuers’ ability to meet clear parameters on transparency, liquidity, and market surveillance.

Domino effect: towards dozens of new ETFs in the coming months

With the application of the new standards, issuers will be able to present similar products on multiple digital assets. According to Bloomberg analyst Eric Balchunas, over 100 crypto ETFs could be launched in the next 12 months, expanding the offering on assets already present in the GDLC basket and including other liquid tokens. In this context, competition on the cost and replication front could intensify rapidly.

Why SEC Approval Accelerates Listings

The new standards reduce the need for individual filings (as per Rule 19b-4) for each new ETP, allowing for a faster regulatory process. The increased agility in approval is particularly relevant for instruments based on digital assets with sufficiently mature underlying markets and subject to adequate oversight.

In parallel, the experience gained with ETFs based on futures contracts for Bitcoin and Ether – which has outlined operational protocols in terms of custody, pricing, and market surveillance – has helped reduce uncertainty, increasing the interest of issuers.

Context and History: From the Summer Halt to the Green Light

In July 2025, the SEC had postponed the decision on the conversion of GDLC for further analysis. The turning point came on September 17, 2025, when authorization was granted for listing on a regulated market, definitively transforming the vehicle from OTC to ETP. That said, the process followed the typical stages of a transition from an unregulated secondary market to formal listing.

GDLC as a multi-crypto ETP: the operational detail

• Type: Multi-asset ETP focused on large-cap digital assets
• Objective: offer diversified exposure to the top five tokens
• Methodology: basket management and rebalancing as defined in the fund’s prospectus
• Information: NAV, AUM, and composition periodically updated on the manager’s website

Useful Data and Points to Verify

• Expense ratio: value indicated in the official prospectus
• Token weights: percentages updated to the most recent rebalancing
• Market maker and spread: specific details that will be communicated at the debut on NYSE Arca

What Changes for Investors

• Simplified access: ability to gain exposure to an entire multi-crypto basket through a single listed instrument
• Cost competition: the arrival of new issuers could lead to a reduction in fees and spreads
• Operational efficiency: listing on a regulated market involves creation/redemption mechanisms that enhance liquidity; see our glossary for creation/redemption mechanisms
• Risks: investors must consider the inherent volatility of digital assets and potential discrepancies compared to the NAV

Upcoming Steps and Rules

• Listing: awaiting the publication of the trading start schedule on NYSE Arca
• Documentation: update of the prospectus and term sheet, with details on fees, weights, and rebalancing
• Pipeline: new filings for additional crypto ETP/ETF that will use generic standards
• Monitoring: continuous verification of liquidity, volumes, and quality of price discovery

Focus asset: which cryptos are included

GDLC provides integrated exposure to Bitcoin, Ether, XRP, Solana and Cardano. The composition of the fund may vary following the rebalancing provided by the adopted methodology. Indeed, the dynamic nature of the basket is an integral part of the product’s indexed approach.

Market Implications

The introduction of the first multi-crypto ETP in the United States strengthens the legitimization of digital assets in traditional asset allocation.

The new asset class and the competition among issuers could trigger a phase of innovation, both in the management of token baskets and in risk hedging strategies.

Yet, the quality of technical implementation and market controls will remain central to the stability of the entire segment.