Grayscale GDLC: The First Multi-Asset Crypto ETF in the US Begins Trading on NYSE Arca

On September 19, 2025, the cryptocurrency investment landscape reached a significant milestone as Grayscale CoinDesk Crypto 5 ETF (Ticker: GDLC) began trading on NYSE Arca as the first multi-asset crypto ETP in the United States. This launch represents a watershed moment for institutional and retail investors seeking diversified exposure to the digital asset ecosystem through a regulated exchange-traded product.

The transformation of GDLC from an over-the-counter traded fund to a NYSE-listed ETF follows SEC approval granted on September 17, 2025, after a period of intense regulatory scrutiny and innovation. The fund's journey to this point has been years in the making, reflecting the evolving regulatory landscape surrounding cryptocurrency investment products.

A Multi-Asset Approach to Crypto Investing

GDLC offers investors exposure to the five largest and most liquid cryptocurrency assets by market capitalization: Bitcoin, Ether, XRP, Solana, and Cardano. This diversified approach addresses a key limitation of single-asset crypto ETFs that have dominated the market since the approval of spot Bitcoin ETFs earlier in 2024.

The fund tracks the CoinDesk 5 Index, developed by CoinDesk Indices, a leading crypto index provider. As of the launch date, GDLC provides coverage of over 90% of the crypto market capitalization, positioning it as a comprehensive vehicle for investors seeking broad participation in the digital asset ecosystem without the complexities of direct cryptocurrency ownership.

The strategic selection of these five assets reflects careful consideration of liquidity, market capitalization, and regulatory clarity. According to Grayscale's methodology, the assets included must have eligibility for U.S. exchange and custody accessibility, with U.S. dollar or U.S. dollar-related trading pairs. The fund explicitly excludes stablecoins, memecoins, gas tokens, privacy tokens, wrapped tokens, staked assets, or pegged assets to maintain focus on established, liquid cryptocurrencies.

Journey from OTC to Major Exchange

GDLC's path to NYSE Arca began with its launch in 2018, followed by public trading on the OTCQX Market from November 22, 2019, until September 18, 2025. The fund became a Securities Exchange Act of 1934 reporting company in 2021, establishing the regulatory foundation necessary for eventual major exchange listing.

This lengthy development process reflects the cautious approach U.S. regulators have taken toward cryptocurrency investment products. The fund has served as a proving ground for multi-asset crypto exposure, allowing Grayscale to demonstrate the viability and demand for diversified digital asset investment vehicles.

Peter Mintzberg, Chief Executive Officer of Grayscale, emphasized the historic nature of this development, stating that the listing "marks a historic milestone for the entire crypto ETP landscape." He noted that GDLC has been meeting growing investor demand for diverse crypto exposure for nearly a decade, with investors increasingly turning to the ETP wrapper for their cryptocurrency allocations.

Performance and Market Impact

GDLC has gained more than 40% in 2025 as many cryptocurrencies hit record highs, outpacing bitcoin by nearly 11% since June. This outperformance demonstrates the potential benefits of diversification within the cryptocurrency space, as the fund's four other assets have outperformed Bitcoin during this period.

The strong performance reflects the broader cryptocurrency market rally that has characterized 2025, driven by factors including increased institutional adoption, regulatory clarity, and macroeconomic conditions favoring risk assets. The diversification across five major cryptocurrencies has allowed investors to capture gains from different segments of the digital asset market.

Regulatory Revolution: Streamlined ETF Approval Process

The approval of GDLC coincides with a broader regulatory shift that could reshape the cryptocurrency ETF landscape. The SEC voted to approve orders to permit in-kind creations and redemptions by authorized participants for crypto asset exchange-traded product shares, representing a significant departure from recently approved spot Bitcoin and Ether ETPs.

More significantly, the SEC approved generic listing standards, which allow exchanges to list commodity-based exchange-traded products, including cryptocurrencies, without individual reviews. This streamlined process could accelerate the approval of future cryptocurrency ETFs, potentially opening the floodgates for a wave of new products.

Grayscale Digital Large Cap Fund was among the first multi-asset ETFs approved under the new rules, demonstrating an immediate advantage for diversified offerings. This development suggests that the SEC is becoming more comfortable with cryptocurrency investment products and is moving toward a more standardized approval framework.

Competitive Landscape and Market Implications

The approval of GDLC comes amid a broader expansion of cryptocurrency ETF offerings. As of April 2025, the SEC is reviewing 72 crypto-related ETF filings, encompassing assets like XRP, Litecoin, Solana, and even memecoins such as Dogecoin. Major asset management firms, including VanEck, 21Shares, Bitwise, and Grayscale, are each pushing multiple crypto ETF proposals.

The success of spot Bitcoin ETFs, which have attracted billions in assets since their approval, has demonstrated institutional and retail appetite for regulated cryptocurrency investment vehicles. GDLC's multi-asset approach represents the next evolution in this space, offering investors a way to gain diversified exposure without the need to select individual cryptocurrencies or manage multiple single-asset funds.

Industry analysts, including Bloomberg's James Seyffart, have indicated that the SEC's decision could trigger a wave of new ETF launches, potentially extending beyond Bitcoin and Ethereum to assets like Solana, XRP, and even niche tokens.

Investment Structure and Risk Considerations

GDLC operates as an exchange-traded product that is not registered under the Investment Company Act of 1940, meaning it is not subject to the same regulations and protections as traditional ETFs and mutual funds. This structure provides flexibility but also introduces additional risks that investors must consider.

The fund maintains its strategic focus through quarterly rebalancing to ensure alignment with the leading assets in the crypto market by market capitalization and liquidity. This systematic approach helps maintain the fund's objective of providing broad exposure to the most established digital assets while adapting to the evolving cryptocurrency landscape.

As part of its ETP structure, GDLC now creates and redeems shares on an ongoing basis, providing the liquidity mechanisms that distinguish ETFs from closed-end funds and can help minimize premiums and discounts to net asset value.

Looking Ahead: Implications for Digital Asset Adoption

The launch of GDLC represents more than just another investment product; it signals a maturing cryptocurrency investment ecosystem that is becoming increasingly accessible to traditional investors. The ability to gain diversified crypto exposure through a regulated, exchange-traded product removes many barriers that have previously prevented institutional and retail investors from participating in digital asset markets.

The timing of this launch is particularly significant given the broader adoption of cryptocurrency by institutional investors and the growing recognition of digital assets as a legitimate asset class. The availability of diversified crypto exposure through traditional brokerage accounts could accelerate this adoption trend.

Furthermore, the streamlined regulatory framework established by the SEC's new generic listing standards suggests that the pace of cryptocurrency ETF innovation may accelerate significantly. This could lead to more specialized and thematic cryptocurrency investment products, providing investors with increasingly sophisticated ways to gain exposure to different segments of the digital asset ecosystem.

Conclusion

The launch of Grayscale CoinDesk Crypto 5 ETF on NYSE Arca represents a pivotal moment in the evolution of cryptocurrency investment products. By offering diversified exposure to five major digital assets through a regulated, exchange-traded format, GDLC addresses a significant gap in the market and provides investors with a comprehensive tool for participating in the digital asset ecosystem.

The successful launch, combined with the SEC's new streamlined approval process, suggests that the cryptocurrency ETF market is entering a new phase of growth and innovation. As regulatory clarity continues to improve and institutional adoption accelerates, products like GDLC may become standard components of diversified investment portfolios.

For investors seeking exposure to the cryptocurrency market, GDLC offers a professionally managed, diversified approach that eliminates many of the operational complexities associated with direct digital asset ownership while providing access to the growth potential of this emerging asset class. As the first of its kind in the United States, GDLC has established a new category of investment products that will likely see significant expansion in the months and years ahead.