The SEC has cleared the Grayscale Digital Large Cap Fund (GDLC) for listing and trading. The fund invests in the five most well-known cryptocurrency altcoins: Cardano ($ADA), Solana ($SOL), XRP ($XRP), Ethereum ($ETH), and Bitcoin ($BTC).
Additionally, the approval covers p.m.-settled options on the Mini-Cboe Bitcoin U.S. ETF Index and the Cboe Bitcoin U.S. ETF Index, opening up new choices for institutional and retail investors looking for regulated and diversified exposure to digital assets.
Regulatory Progress at the SEC
The SEC took its action in response to new generic listing requirements for commodity-based exchange-traded products (ETPs) that incorporate digital assets, announced on September 17. Now, exchanges such as the NYSE, Cboe, and Nasdaq can list eligible crypto-backed ETFs without undergoing drawn-out, case-by-case regulatory examinations. The chairman of the Securities and Exchange Commission said,
“By approving these generic listing standards, we are ensuring that our capital markets remain the best place to engage in the cutting-edge innovation of digital assets”.
It is planned that this simplified procedure will quicken the introduction of cryptocurrency exchange-traded funds (ETFs) for specific altcoins in the US. It also facilitates the process for ETF issuers to approach exchanges with innovative multi-asset products.
The approval of the Grayscale Digital Large Cap Fund, which covers BTC, ETH, XRP, SOL, and ADA, makes it the first multi-asset spot crypto ETF to launch on NYSE Arca. This is a significant milestone in the institutional crypto market’s maturation.
Notably, investors and traders have more freedom to express market opinions on the performance of spot Bitcoin ETFs and manage risk with these cash-settled, European-style options. These options could increase market liquidity for items tied to cryptocurrencies because they include quarterly, non-standard, and third-Friday expiration dates.
It might lead to a surge of crypto ETF debuts in the upcoming year, with up to 100 such products possibly making their way to U.S. exchanges if authorized. This historic decision has the potential to position U.S. financial markets at the vanguard of crypto finance, expand investor choice, and support institutional adoption of digital assets.
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