Regulators Approve Grayscale’s Crypto ETP, Changing How the Market is Accessed

The Grayscale Digital Large Cap Fund (GDLC) from Grayscale has received authorization from the U.S. Securities and Exchange Commission (SEC), making it the first exchange-traded product (ETP) in the market that covers multiple cryptocurrencies. This fund grants investors access to five leading digital currencies:

(BTC), (ETH), , (SOL), and (ADA). The SEC’s decision is part of a broader push to accelerate the approval of crypto-related financial products and coincides with the adoption of general listing criteria for crypto ETFs, which is expected to simplify the regulatory process for future applications.

The GDLC’s portfolio is predominantly weighted toward

, comprising 72.23% of total assets, with ETH making up 12.17%. The shares of XRP, , and stand at 5.62%, 4.03%, and 1%, respectively. Through the fund, investors can diversify their portfolios with digital assets without needing to directly manage, buy, or safeguard individual cryptocurrencies.

Grayscale’s CEO, Peter Mintzberg, revealed the SEC’s approval on X, highlighting the importance of the ruling for regulatory transparency and progress within the digital asset sector. Earlier in July, the SEC had initially given the green light for Grayscale to transition its over-the-counter offering into a tradeable ETP, but subsequently paused the process, reportedly for internal assessment. Grayscale contended that this delay was unfavorable for investors and remained optimistic about the eventual launch of the product.

The announcement had a favorable effect on the involved cryptocurrencies. BTC momentarily soared to $117,900 before settling at $117,300, while ETH touched $4,602. Both tokens recorded significant advances over the past day and week. XRP, SOL, and ADA also experienced gains, with SOL notching a notable 10% weekly rise.

Market experts have shared mixed outlooks based on current trends. BTC could potentially reach $160,000 by year’s end if it surpasses the $120,000 mark. ETH is projected to approach $10,000 during this market cycle. Meanwhile, SOL and XRP are forecast to hit $4,000 and between $5,000 and $15,000, respectively, by the end of the cycle.

The approval of GDLC is seen as a major boost for the cryptocurrency sector. Eric Balchunas, a senior ETF analyst at Bloomberg, suggested this could spark a wave of new ETF introductions, possibly exceeding 100 over the coming year. This move reflects the SEC’s growing acceptance of structured crypto investments and may point to a new era of easier and better-regulated digital asset investment opportunities.