Highlights:
- GDLC ETF includes BTC, ETH, XRP, SOL, and ADA, tracking the CoinDesk 5 Index
- SEC approved the conversion just ahead of the July 2 regulatory deadline
- Investors can now access diversified crypto exposure via NYSE Arca
Grayscale’s Digital Large Cap Fund (GDLC) has officially converted into an exchange-traded fund (ETF). The SEC approved the move just before the July 2 deadline. The ETF now trades on NYSE Arca and includes five leading digital assets.
ETF Conversion Approved by SEC
The SEC approved Grayscale’s revised S-3 filing on July 1, finalizing GDLC’s transition into an ETF. This allows the fund to offer regulated exposure to Bitcoin, Ethereum, XRP, Solana, and Cardano. The ETF structure replaces the previous OTC model and simplifies investor access.
The GDLC ETF tracks the CoinDesk 5 Index, reflecting market-cap-weighted performance. Grayscale confirmed the fund meets institutional custody and compliance standards. Shares are now available through standard brokerage accounts.
ETF analyst James Seyffart confirmed the approval on social media. The SEC’s decision reflects growing momentum for regulated crypto funds. Grayscale completed the conversion just hours before the regulatory deadline.
Trading Structure and Asset Composition
The ETF improves market pricing by narrowing the gap between NAV and share price. As of June 30, NAV per share was $48.83, while the market price was $47.95. GDLC now benefits from continuous trading and tighter spreads.
The fund holds $774.8 million in assets under management. Bitcoin accounts for 80.8% of the portfolio, followed by Ethereum (11.07%), XRP (4.63%), Solana (2.75%), and Cardano (0.75%). Grayscale removed private placement access, directing investors to the ETF.
By moving to NYSE Arca, GDLC gains liquidity and transparency. The ETF format provides daily pricing and avoids the limitations of OTC trading. Institutional and retail investors can now buy shares more easily.
New SEC Framework May Speed Up Crypto ETFs
The SEC may introduce listing standards to accelerate ETF approvals. Journalist Eleanor Terrett reported that qualifying tokens may get listed in just 75 days. Criteria would likely include liquidity, volume, and custody readiness.
These standards could reduce paperwork and delays for fund issuers. More crypto ETFs could enter the market quickly under the proposed rules. This would further legitimize digital assets as an investable class.
Grayscale’s ETF launch sets a precedent for future products. The SEC continues shaping a framework for crypto’s integration into traditional finance.
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Source: https://coincu.com/346278-grayscales-gdlc-fund-gains-etf-status/