SEC Approves First Multi-Asset Cryptocurrency ETP
The US Securities and Exchange Comission (SEC) has given the green light to the first multi-asset cryptocurrency exchange-traded product (ETP) in the country, allowing Grayscale’s Digital Large Cap Fund (GLDC) to be listed.
This fund will provide exposure to five of the largest cryptocurrencies globally: Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). This approval, revealed in a filing made on Wednesday, signifies a landmark moment for the digital asset sector and comes on the heels of the successful launch of US spot Bitcoin exchange-traded funds (ETFs).
A multi-asset crypto ETP offers traditional investors a more convenient method to gain exposure to multiple cryptocurrencies without needing to set up accounts on various exchanges or buy the tokens directly.
Investor Expectations for Altcoin Season
The filing was released as investor anticipation grows for an altcoin season, which is a phase seen in each bull market when altcoins tend to outperform Bitcoin’s price momentum.
David Duong, Coinbase Institutional’s global head of research, noted in a monthly outlook report, “We think current market conditions now suggest a potential shift towards a full-scale altcoin season as we approach September.”
Approval Process Under New Standards
The SEC approved Grayscale’s product using new generic listing standards that aim to expedite reviews for spot crypto ETFs on exchanges like Nasdaq, NYSE Arca, and Cboe BZX. This decision allows applications to be reviewed collectively, significantly speeding up the approval process.
“Grayscale Digital Large Cap Fund $GDLC was just approved for trading along with the Generic Listing Standards,” stated Grayscale CEO Peter Mintzberg in a Thursday X post, adding that the team is committed to launching the product “expeditiously.”
Mintzberg also expressed his gratitude to the SEC Crypto Task Force for their “unmatched efforts in bringing the regulatory clarity our industry deserves.”
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Establishment of the SEC Crypto Task Force
The SEC Crypto Task Force was created on January 21 by acting SEC Chair Mark Uyeda to establish a clear regulatory framework for crypto assets, led by Commissioner Hester Peirce, who is often dubbed “Crypto Mom,” as reported at the time.
Observers of the industry viewed the formation of this task force as a notable shift from the SEC’s prior enforcement-heavy strategy towards the crypto sector, which was characteristic of former Chair Gary Gensler’s tenure.
Under Gensler’s leadership, the SEC pursued legal actions against some prominent firms in the industry, including Ripple Labs in 2020, Terraform Labs in 2022, and cryptocurrency exchanges Binance, Coinbase, and Kraken in 2023. These lawsuits incurred billions in legal fees for the industry.
