Main Points :
- The U.S. SEC approved the first multi-asset crypto ETP (exchange-traded product), Grayscale’s Digital Large Cap Fund (GDLC), covering BTC, ETH, XRP, SOL, and ADA.
- New generic listing standards adopted by the SEC streamline and speed up the process for spot crypto ETF/ETP approvals.
- This regulatory change is expected to trigger a wave of new crypto ETF applications (including altcoins and thematic baskets), possibly over 100 in the next 12 months.
- The asset allocation of GDLC is heavily weighted toward Bitcoin (~70-72 %), with smaller, yet meaningful portions in Ethereum (~17-20 %) and the rest spread among XRP, Solana, and Cardano.
- Investor demand is strong, institutional inflows increasing, and this may mark the start of a renewed “altcoin season.”
1. What Happened: SEC’s Multi-Crypto ETP Approval
On September 18, 2025, the U.S. Securities and Exchange Commission (SEC) approved Grayscale’s Digital Large Cap Fund (GDLC) as the first U.S. multi-asset cryptocurrency exchange-traded product (ETP). This product provides exposure to five major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL) and Cardano (ADA).
GDLC had previously been a digital asset manager’s over-the-counter fund. With the new status, it is being listed on NYSE Arca. The SEC’s approval leveraged new generic listing standards, which are designed to streamline the process for listing spot crypto ETFs/ETPs. These generic standards allow exchanges such as Nasdaq, NYSE Arca, and Cboe BZX to list qualifying products without going through the full, time-consuming case-by-case regulatory process.
At the time of approval, GDLC had about US$915 million in assets under management. The share of BTC is roughly 70-72 %, ETH ~17-20 %, and the remaining allocation is divided among XRP, SOL, and ADA.
2. Why the SEC Did This: Regulatory Evolution & Market Maturation
Regulatory Clarity comes to Crypto ETFs
Previously, many ETF or ETP applicants had to go through Section 19(b) filings, each of which required detailed review, public comments, and could take many months (sometimes up to ~240 days). The new generic listing standards eliminate much of this procedural friction.
Market Demand & Institutional Pressure
Institutional investors have been pushing for more diversified exposure to crypto—especially beyond just Bitcoin and Ethereum. They want baskets or funds that reduce single-asset risk, provide better liquidity, and simplify regulatory and custody burdens. The large flows into BTC and ETH ETFs show demand; the market signals are that investors are looking ahead to exposure to altcoins but need proper regulated vehicles.
A Broader Policy Shift
This move reflects a shift in how regulators view crypto: less as an outlier or fringe speculative asset, and more as a legitimate asset class that needs rules, standards, and structures similar to traditional finance. The SEC’s formation of its Crypto Task Force, its willingness to adopt generic standards, and to allow in-kind creations/redemptions for crypto ETPs are all parts of this shifting attitude.
3. Implications and Recent Trends
Faster Launches of Crypto ETFs / ETPs
Due to the new rules, approvals that used to take many months may now be shortened significantly. The expectation is that many more crypto ETPs—including ones that focus on altcoins or baskets—will be approved. Bloomberg and others suggest there could be over 100 new crypto ETF/ETP products in the next year.
Altcoins & Thematic Products Coming to the Forefront
With the multi-asset fund covering XRP, Solana, Cardano (in addition to BTC and ETH), and with regulatory pathways opening, altcoins are likely to benefit. Also thematic ETFs (e.g. tied to staking, decentralized finance, etc.) or product baskets may gain traction.
Risk and Opportunity Dynamics for Investors
While diversification via a multi-asset ETP reduces single-asset exposure risk, there remain challenges:
- Volatility in altcoins is higher than in large caps like BTC/ETH.
- Liquidity for some altcoins may be thinner, meaning potential slippage or difficulty in large trades.
- Regulatory changes still carry uncertainty: custody, taxation, fraud risk, and how generic standards will be interpreted in practice.
- Expense ratios and fees could eat into returns; GDLC’s cost structure will matter.
On the opportunity side:
- Easier access for traditional and institutional investors to crypto exposure.
- Potential growth of secondary products (derivatives, staking, etc.) built around these ETFs/ETPs.
- Possible positive effects on the prices of altcoins as funds accumulate them.
Institutional Flows and Macro Environment
It is not just about the regulatory enablement: actual capital flows are rising. Bitcoin and Ethereum ETFs have recently seen large inflows, illustrating that investor interest is strong. Macroeconomic conditions (interest rate expectations, inflation trends) also play a role: in a more stable or dovish U.S. Fed environment, risk assets (including crypto) are more attractive.
4. Strategy Advice for Investors (Especially Outside U.S., e.g., Japan)
For readers in Japan (or other markets) seeking new revenue sources or evaluating emerging cryptos, the following strategic points are relevant:
Use Multi-Crypto ETFs/ETPs as a Diversified Entry
Rather than picking single tokens, exposure via funds like GDLC offers a curated basket, lowering the risk associated with large swings in one token (especially altcoins).
Stay Aware of Local Regulatory Differences
U.S. rules are changing; your jurisdiction (Japan, EU, etc.) may follow or diverge. Understand how local regulators treat crypto ETFs, crypto taxation, custody laws, etc.
Watch Fee Structures & Underlying Tokens Closely
Funds differ by what they include (which tokens, how many), how often rebalancing occurs, how fees are structured, and how liquidity is handled. Some tokens included may carry more risk than others.
Have a Long-Term View & Flexible Allocation
Regulatory and technical infrastructure (custody, auditing, compliance) is still maturing. Hence, it helps to maintain a long-term perspective, avoid committing too much capital too early to high-volatility assets, and be ready to adjust allocations as more data emerges (how funds perform, how regulations evolve).
Graph Suggestion
Graph Title: Projected Number of New Crypto ETFs/ETPs After SEC’s Generic Listing Standards
X-axis: Timeline (Months: Oct 2025 to Oct 2026)
Y-axis: Cumulative number of approved or launched crypto ETF/ETPs
Lines / Bars:
- Base case: modest growth (e.g. +20-30)
- Optimistic case: aggressive growth (e.g. +80-120)
This graph would illustrate expectations in the market (from analysts) about how many new products may be listed over the next 12 months.
Conclusion
The SEC’s approval of Grayscale’s Digital Large Cap Fund (GDLC) marks a major inflection point. With exposure to five of the largest crypto assets (BTC, ETH, XRP, SOL, ADA) in a single product, and the implementation of generic listing standards for spot crypto ETFs, the regulatory framework in the U.S. is shifting in ways that make diversified crypto investing far more accessible to traditional and institutional investors.
For those looking for new investment opportunities, this opens up a wide field: baskets and altcoin exposure, thematic funds, and perhaps better liquidity and maturity in infrastructure. Yet, risks remain—not least regulatory uncertainties, volatility, fee drag, and the fact that “altcoin season” is still speculative rather than guaranteed.
In short: we are entering a new era where crypto is increasingly being treated as an asset class, not just a speculative novelty. Savvy investors will want to watch new product filings, regulatory developments, and actual performance of these multi-crypto offerings. For many, these represent one of the more promising paths forward in building diversified, resilient crypto exposure.
