SEC Approves Grayscale’s Digital Large Cap Fund for Trading

Grayscale’s Digital Large-Cap Fund (GDLC) has been approved for listing and trading by the U.S. Securities and Exchange Commission (SEC).

This coincides with the introduction of new ETF listing guidelines that make the process easier for issuers.

Multi-Asset Crypto ETF Gets Go-ahead

Peter Mintzberg, Grayscale’s CEO, shared the news in a September 18 X post, noting that the company’s team is “working expeditiously to bring the *FIRST* multi #crypto asset ETP to market.”

The fund tracks the CoinDesk Large Cap Select Index and will operate with daily cash creation and redemption of 10,000-share baskets. Shares will trade on NYSE Arca under the ticker GDLC, offering investors access to various digital assets, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA).

The green light comes after a months-long process that began with Grayscale’s June filing to convert GDLC from a private trust into a publicly traded ETF. NYSE Arca submitted its rule change proposal on July 1, causing the SEC’s Division of Trading and Markets to approve the listing.

However, the agency issued a temporary stay the following day amid internal concerns over multi-asset crypto ETFs. In mid-August, the asset manager filed a legal challenge, arguing that the financial watchdog had missed its statutory deadline under the Exchange Act. This prompted the agency to lift its order and grant full approval on September 17.

New Crypto ETF Listing Framework

On the same day, the SEC also cleared new rules to adopt generic listing standards for exchange-traded products (ETPs) that hold spot commodities, including digital assets.

“This approval helps to maximize investor choice and foster innovation by streamlining the listing process and reducing barriers to access digital asset products within America’s trusted capital markets,” said SEC Chairman Paul S. Atkins.

The move is expected to speed up the path to market for new ETFs by removing the lengthy 19(b) rule filing process, which can stretch up to 240 days and requires the regulator to issue a direct ruling. Under the new system, ETF issuers can work directly with exchanges such as Nasdaq, NYSE, or CBOE. If their product meets the requirements, the exchange can proceed with registering it.

Meanwhile, the listing and trading of p.m.-settled options on the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe Bitcoin U.S. ETF Index, including third-Friday, nonstandard, and quarterly expirations, has also been given the green light.

Nate Geraci, president of NovaDius Wealth Management, said the “crypto ETF floodgates” are about to open, with a surge of new filings and launches expected. He added that the investment products will provide a bridge between traditional finance and DeFi, giving mainstream access to digital assets.