The crypto ETF wave continues! Amid a backlog of pending applications, the SEC has finally granted approval for Grayscale's Digital Large Cap Fund (GDLC) conversion into a multi-crypto ETF. Here’s what you need to know:
Key Takeaways
- SEC greenlights GDLC’s conversion to a publicly traded ETF tracking Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
- Regulatory delays persist for other crypto ETF filings, with decisions postponed until May 2026, raising industry concerns.
- GDLC will trade on NYSE Arca under the ticker GDLC with an 80% BTC allocation.
Grayscale’s ETF Approval: Breaking Down the Decision
What Is the GDLC Fund?
The Grayscale Digital Large Cap Fund mirrors the CoinDesk 5 Index, which tracks the top five cryptocurrencies by market cap. Initially launched as a closed-end fund, GDLC restricted share creation/redemption, often causing price deviations from its net asset value (NAV).
The Path to Approval
- March 2024: Grayscale filed for GDLC’s ETF conversion.
- September 2024: SEC issued its final approval after multiple delays, just before its 30 September deadline.
Rising Pressure on the SEC
Current ETF Landscape
- January 2024: Spot Bitcoin ETFs approved.
- June 2024: Spot Ethereum ETFs followed.
- July 2024: Bitwise filed for Dogecoin and Aptos ETFs.
With 70+ pending applications, including potential new filings from BlackRock, the SEC faces mounting pressure to streamline approvals while ensuring compliance.
GDLC’s Crypto Holdings Breakdown
| Asset | Allocation |
|-------|------------|
| BTC | 80% |
| ETH | 11% |
| XRP | 4.8% |
| SOL | 2.8% |
| ADA | 0.8% |
FAQs
1. Why did the SEC delay GDLC’s ETF approval?
The SEC typically extends review periods for complex financial products to assess market risks and investor protections.
2. How does GDLC differ from Grayscale’s Bitcoin Trust (GBTC)?
GDLC offers diversified exposure across multiple cryptocurrencies, while GBTC focuses solely on Bitcoin.
3. What’s next for crypto ETFs?
Expect more filings for altcoin ETFs, though approvals may slow due to regulatory scrutiny.
👉 Stay updated on ETF developments
The Bottom Line
This approval marks a milestone for diversified crypto investments, but the SEC’s cautious approach suggests a rocky road ahead for other applicants.
Author: Ben Canton
Crypto educator and analyst, bridging complex concepts for mainstream audiences. Advocating for transparent, user-focused blockchain adoption.
Tip: Always research ETF fees and structures before investing.