Grayscale Launches First Multi-Crypto ETF in the US: Grayscale has introduced the Grayscale CoinDesk Crypto 5 ETF (GDLC), the first of its kind in the United States offering direct exposure to Bitcoin, Ethereum, Solana, XRP, and Cardano, with Bitcoin (73%) and Ethereum (17%) dominating the weighting.
In a significant move, the SEC, led by Paul Atkins, has given the green light as part of the ‘Project Crypto,’ paving the way for over 100 potential crypto ETFs in the US in the coming year.
The GDLC reflects the growing appetite of institutional investors for simple, regulated, and diversified products, marking a new era for crypto ETFs.
A Basket Centered on Bitcoin and Ethereum
The GDLC provides immediate exposure to the current top five: Bitcoin (73% weighting), Ethereum (17%), Solana, XRP, and Cardano. This choice mirrors the market reality where Bitcoin and Ethereum still dominate the capitalization, while other tokens show increasing adoption.
The underlying index was designed by CoinDesk Markets and will be rebalanced quarterly to track changing market dynamics. Therefore, if a new crypto emerges in the top five, it can automatically be included in the fund’s composition.
An Unprecedented Approval from the SEC
The project faced challenges in July when the SEC initially agreed to convert the Grayscale Digital Large Cap Fund but then suspended its decision. However, under the leadership of new chairman Paul Atkins, the regulator softened its stance, enabling this launch.
This development is part of the ‘Project Crypto’ initiative aimed at aligning financial market regulations with digital assets. The implications could be massive, with nearly a hundred crypto ETF proposals awaiting SEC approval, signaling the potential for over 100 to hit the US market in the next 12 months.
A Growing Appetite Among Institutional Investors
According to Grayscale CEO Peter Mintzberg, the GDLC is not just another product but evidence of a long-term strategy: ‘Being the first, moving fast, and providing investors with transparent exposure to the crypto ecosystem.’
Wealth managers, like Nate Geraci of NovaDius Wealth Management, anticipate a ‘huge category’ emerging soon. Indicative and actively managed ETFs in the spot crypto sector could attract traditional financial advisors seeking regulated and user-friendly tools.
The Crypto Market Enters a New Era
The launch of the GDLC coincides with the debut of the first XRP and Dogecoin spot ETFs, which generated around $55 million in volume on the first day alone. With regulatory easing and standardized indices, the stage is set for the US to become the epicenter of crypto ETFs.
In a market where Bitcoin reigns but innovation thrives, this new ETF signifies a symbolic milestone: the era of multi-crypto baskets begins. For investors, it’s a simplified entry point into a sector that is still young but now institutionalized.
