Grayscale Receives SEC Approval for Its First Multi‑Crypto Exchange‑Traded Product
In a decisive move that could reshape the United States’ approach to digital‑asset funds, the Securities and Exchange Commission (SEC) approved Grayscale Investments’ Digital Large Cap Fund (GDLC) on September 18, 2025. The decision marks the launch of the first multi‑crypto exchange‑traded product (ETP) in the United States, providing investors with a single vehicle that holds a basket of major cryptocurrencies.
The Composition of the GDLC
The GDLC is structured to offer diversified exposure to five of the most liquid and widely traded digital assets:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP
- Solana (SOL)
- Cardano (ADA)
The fund’s holdings mirror the CoinDesk 5 Index, which tracks the performance of the top‑market‑cap cryptocurrencies. By bundling these tokens, Grayscale delivers a balanced portfolio that mitigates the volatility inherent in single‑asset exposure while retaining the upside potential of the leading blockchain projects.
Regulatory Context and Market Impact
The SEC’s approval follows a broader shift in regulatory standards for cryptocurrency ETFs. In late September, the commission announced a relaxation of the listing criteria that previously required a case‑by‑case review for each proposed spot crypto ETF. This new framework allows exchanges to list spot‑backed funds more efficiently, reducing the regulatory lag that once slowed product launches.
Grayscale’s success signals that the SEC is open to multi‑asset structures, a departure from the earlier focus on single‑cryptocurrency products. Analysts suggest that the approval could accelerate mainstream adoption of digital assets by providing institutional investors with a compliant, diversified product that is easier to trade on traditional exchanges.
Market Reactions and Price Dynamics
Following the announcement, Grayscale’s own cryptocurrency—an unlisted token that serves as a proxy for the fund’s holdings—experienced a sharp decline, closing at $0.00000154237 on September 16, 2025. This dip reflects the market’s adjustment to the new regulatory landscape and the impending shift of capital toward the approved ETP. The token’s 52‑week high reached $0.0000168434 on August 12, while its lowest point was $1.38584 × 10⁻⁷ on August 2, indicating considerable volatility as investors reassess their positions.
Strategic Implications for Grayscale and the Crypto Ecosystem
For Grayscale, the GDLC represents a pivotal expansion of its product suite. The firm’s ability to navigate the SEC’s evolving standards positions it as a leader in bringing regulated crypto exposure to the public market. Moreover, the fund’s launch could set a precedent for future multi‑asset offerings, encouraging other asset managers to pursue similar structures.
From an ecosystem perspective, the approval may stimulate liquidity across the five included tokens. With a single ETP that aggregates demand, market makers and exchanges could experience reduced fragmentation, potentially lowering bid‑ask spreads and enhancing price discovery.
Looking Ahead
The SEC’s endorsement of the GDLC comes at a time when several other firms—such as Bitwise and Van Eck—are filing proposals for single‑cryptocurrency ETFs, including AVAX. Grayscale’s move may catalyze a wave of new products that blend diversification with regulatory compliance.
Investors now face a clearer pathway to gain exposure to the leading cryptocurrencies through a regulated, exchange‑listed vehicle. As the market continues to mature, the GDLC’s performance and investor reception will likely influence the pace at which additional multi‑asset crypto ETPs enter the United States market.