SEC Greenlights First U.S. Multi-Crypto Exchange-Traded Product, Says Grayscale CEO

The US Securities and Exchange Commission (SEC) has approved the first multi-asset cryptocurrency exchange-traded product (ETP) in the United States, 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). The approval, announced in a filing on Wednesday, represents a significant achievement for the digital asset sector and follows the momentum gained from US spot Bitcoin exchange-traded funds (ETFs).

A multi-asset crypto ETP offers traditional investors a convenient way to access multiple cryptocurrencies without the need to open accounts on exchanges or buy the tokens directly.

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The filing emerged amid rising investor hopes for an altcoin season, a phase in every bull market where altcoins tend to outperform Bitcoin.

On August 15, Coinbase projected a “full-scale altcoin season” beginning in September, referencing historical patterns observed in the charts.

“Current market conditions indicate a possible transition towards a comprehensive altcoin season as we near September,” stated David Duong, global head of research at Coinbase Institutional, in a monthly outlook report written by him.

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Grayscale crypto ETP authorized under new SEC generic listing standards

The SEC authorized Grayscale’s product according to the new generic listing standards designed to expedite reviews for spot crypto ETFs on platforms like Nasdaq, NYSE Arca, and Cboe BZX. This decision allows for collective review of applications, leading to faster approvals.

“Grayscale Digital Large Cap Fund $GDLC was just authorized for trading alongside the Generic Listing Standards,” Grayscale CEO Peter Mintzberg stated in a Thursday X post, noting that the team is aiming to launch the product “promptly.”

“The Grayscale team is diligently working to introduce the *FIRST* multi #crypto asset ETP to market featuring Bitcoin, Ethereum, XRP, Solana, and Cardano.”

Mintzberg also expressed gratitude to the SEC Crypto Task Force for their “unsurpassed efforts in providing the regulatory clarity our industry requires.”

The SEC Crypto Task Force was created on January 21 by acting SEC Chair Mark Uyeda to formulate a clear regulatory framework for crypto assets, under the guidance of Commissioner Hester Peirce, frequently known as “Crypto Mom,” as reported by Cointelegraph at that time.

Observers of the industry viewed the establishment of the task force as a notable change from the SEC’s earlier enforcement-focused strategy towards the crypto sector during former Chair Gary Gensler’s tenure.

While leading the SEC, Gensler initiated legal actions against several major firms in the industry, including Ripple Labs in 2020, Terraform Labs in 2022, and cryptocurrency exchanges Binance, Coinbase, and Kraken in 2023. These cases incurred billions in legal costs for the industry.