The SEC has approved the first multi-coin ETF containing XRP, SOL, and ADA, and the Grayscale Digital Large Cap Fund has been authorized for listing.

The U.S. Securities and Exchange Commission (SEC) has approved Grayscale's Digital Large Cap Fund (GDLC) to trade in the market, marking the first multi-crypto ETF product that includes Bitcoin, Ether, XRP, Solana, and Cardano. This approval comes as the SEC adopts universal listing standards for crypto ETFs, with experts predicting that more than 100 crypto asset ETFs may be issued in the next 12 months, representing a significant milestone for the entry of crypto assets into the mainstream financial market.

SEC approves Grayscale Multi-Crypto Assets ETF, XRP, SOL, and ADA recognized

On September 17, Grayscale CEO Peter Mintzberg announced on the social media platform X that the U.S. Securities and Exchange Commission has just approved its Grayscale Digital Large Cap Fund (GDLC). Mintzberg stated in his post that GDLC will become the first multi-crypto asset ETP (exchange-traded product) in the market.

The fund offers investment opportunities in five major crypto assets:

· Bitcoin (BTC)

· Ethereum (ETH)

· XRP

· Solana (SOL)

· Cardano (ADA)

Mintzberg wrote in a post: “Thanks to the continuous and unparalleled efforts of the U.S. SEC's cryptocurrency working group for achieving the regulatory clarity that our industry deserves.”

In July of this year, the SEC delayed its decision on Grayscale's attempt to convert the over-the-counter fund GDLC into a tradeable ETP on the New York Stock Exchange Arca, as the agency wanted to further review the application. According to Grayscale's official website, the fund has a net asset value of $57.7 per share and manages assets exceeding $915 million.

SEC approves universal listing standards for crypto ETF, accelerating the approval process

The approval of GDLC on September 17 coincides with an important regulatory development for crypto ETF issuers: the U.S. Securities and Exchange Commission has “accelerated” the approval of universal listing standards for crypto ETFs.

Paul Atkins, the chairman of the SEC, stated in a statement: “This approval helps to maximize investment options for investors and promotes innovation by simplifying the listing process and reducing the barriers to accessing digital asset products in the trusted capital markets of the United States.”

This development could accelerate the approval process for dozens of Crypto Assets ETFs, some of which track Crypto Assets like XRP, SOL, and DOGE. Bloomberg senior ETF analyst Eric Balchunas stated on X: “The last time they implemented universal listing standards for ETFs, issuance doubled. We are very likely to see over 100 Crypto Assets ETFs issuance in the next 12 months.”

Significant Impact on the Crypto Market

The SEC's approval of GDLC and the adoption of a universal listing standard have multiple important implications for the Crypto Assets market:

1. Shitcoins Obtain Regulatory Approval

It is particularly noteworthy that altcoins such as XRP, SOL, and ADA have been included in ETF products approved by the SEC, indicating that the regulatory agency's attitude towards these assets may be shifting. This development is especially significant for XRP, as the SEC has had a long-standing legal dispute with Ripple.

2. The threshold for institutional investors has been lowered

Multi-Crypto Assets ETFs provide institutional investors with a more convenient way to gain diversified exposure to Crypto Assets without the need to directly hold digital assets or manage multiple wallets. This could attract more traditional financial institutions into the crypto market.

3. Crypto Assets ETF Ecosystem Expansion

The adoption of universal listing standards will significantly accelerate the approval process for crypto ETFs, potentially leading to a surge of ETF products focused on different crypto assets, themes, or strategies. This will provide investors with more choices and further drive the mainstream acceptance of crypto assets.

4. Potential Price Impact

Historically, the launch of ETF products often has a positive impact on the prices of related assets. With assets like XRP, SOL, and ADA included in SEC-approved ETF products, these crypto assets may benefit from increased institutional demand and broader market acceptance.

Future Outlook

As the SEC becomes more open to encryption ETFs, we may see the emergence of more innovative products, including:

· More focused on single asset ETF of specific Crypto Assets

· Thematic Crypto ETFs, such as DeFi, Web3, or Metaverse

· Leveraged and Inverse Encryption ETF Products

· Actively Managed Crypto Assets Strategy

The approval of Grayscale's Digital Large Cap Fund marks an important milestone for Crypto Assets entering the mainstream financial market, providing investors with more opportunities to access this emerging asset class, while also bringing greater regulatory certainty to the entire industry.