All About Coindesk Crypto 5: First Multi-Asset Crypto Etf In America

What Happened

Grayscale Investments, the world’s biggest digital asset investment platform, has launched the Grayscale CoinDesk Crypto 5 ETF on NYSE Arca, marking a major milestone for the U.S. digital asset market.

This fund, previously called the Grayscale Digital Large Cap Fund, is now trading as the first multi-asset crypto exchange-traded product (ETP) available in the U.S. It gives investors access to the five largest and most liquid cryptocurrencies: Bitcoin, Ether, XRP, Solana, and Cardano.

GDLC covers over 90% of the total crypto market capitalization, giving investors broad, diversified exposure to the digital asset ecosystem. GDLC’s portfolio is weighted as follows: Bitcoin 72.23%, Ethereum 17.12%, XRP 5.62%, Solana 4.03%, and Cardano 1.00%.

“Grayscale CoinDesk Crypto 5 ETF has met the growing investor demand for diverse exposure to crypto for nearly a decade and investors are increasingly turning to the ETP wrapper for their crypto exposure,” he added.

The SEC also approved new generic listing standards for crypto ETFs. SEC Chair Paul Atkins said the change will “maximize investor choice and foster innovation” by streamlining the listing process and reducing barriers to access digital asset products.

He pointed to the SEC’s 2019 “ETF Rule” for traditional ETFs, which tripled annual launches from about 117 to nearly 370. Bloomberg’s Eric Balchunas suggests that more than 100 new crypto ETFs could debut within the next year.

Grayscale’s GDLC launch marks a big step for crypto ETFs in the U.S. With new SEC rules easing the path, investors could soon see a flood of fresh crypto funds.

Market Context

By focusing on these established assets, the fund offers a straightforward way to tap into the broader digital asset market. The portfolio rebalances every quarter to stay aligned with the top-performing assets, tracking the CoinDesk 5 Index.

Peter Mintzberg, CEO of Grayscale called it “a historic milestone for the entire crypto ETP landscape.”

This comes after the SEC recently approved Grayscale’s bid to convert its Digital Large Cap Fund (GDLC) into a tradable exchange-traded product on NYSE Arca. It had previously delayed the decision for further review.

Bitwise CIO Matt Hougan said that the SEC’s proposed generic listing standards could “blow the market wide open.”

Why It Matters

Industry experts note that this could trigger a wave of new ETFs.

Details

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Industry Reactions

ETF Expert Nate Geraci believes both index-based and actively managed spot crypto ETFs will see strong demand, particularly from financial advisors.

The Regulatory Shift

What’s Next for Crypto ETFs