Grayscale Investments launched the first multi-asset crypto exchange-traded product (ETP) today that provides exposure to the top five largest and most liquid coins: the Grayscale CoinDesk Crypto 5 ETF (GDLC). The fund tracks the CoinDesk 5 Index, providing exposure to the crypto market’s largest movers and shakers—Bitcoin, Ethereum, XRP, Solana, and Cardano.
Diversified Crypto Exposure
GDLC is an ideal offering for investors who want diversified exposure. It aids in avoiding the concentration risk of allocating to just one specific digital currency. Furthermore, it melds exposure to the top five digital coins in the convenience of a flexible, tax-efficient, and cost-effective investment vehicle. The fund trades on the New York Stock Exchange (NYSE) and carries an expense ratio of 0.59%.
“As mainstream crypto adoption increases, it’s important to have simple, accessible options to incorporate broader crypto exposure in investor portfolios,” said TMX VettaFi head of sector and industry research Roxanna Islam. “GDLC allows investors to easily expand their crypto allocation, diversifying beyond Bitcoin to include other crypto market leaders.”
GDLC was originally launched in 2018 as the Digital Large Cap Fund prior to converting to an ETF. GDLC’s launch comes at a time when investor demand, both retail and institutional, is increasing. Meanwhile, regulatory measures for cryptocurrencies are easing.
“Today’s listing marks a historic milestone for the entire crypto ETP landscape,” said Peter Mintzberg, Chief Executive Officer of Grayscale. “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. GDLC is a purpose-built innovation designed to meet that demand, bringing simplicity and transparent access to the most liquid and largest crypto assets.”
GDLC automatically rebalances quarterly, ensuring exposure to the largest coins in the crypto market via a regulated exchange.
Streamlined Approval Process
The launch comes after the Securities and Exchange Commission (SEC) just recently approved generic listing standards that would essentially put crypto ETPs on a quicker path towards approval. This could open up the market to a flurry of new ETFs that track digital currencies.
Prior to the new standards, the SEC would require separate filings from the asset manager planning to release the crypto product as well as the exchange looking to list said product. Both filings would then need regulatory approval, which could take as long as 240 days. According to estimations, the new listing standards would cut the maximum approval timeframe down to less than a third of that.
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