It was previously noted by Eric Balchunas that most ETFs typically register less than $1 million in initial trading volume, making the performance of GDLC particularly strong.
Nearly $22 million in trading volume was recorded by the Grayscale’s Digital Large Cap Fund ETF (GDLC) on its Sept. 19 debut. As the multi-token basket fund launched on NYSE Arca, 381,298 shares changed hands.
The debut volume is considered consistent with recent crypto ETF launches, including the REX-Osprey Dogecoin ETF that captured $6 million during its Sept. 18 opening hour.
It was previously noted by Bloomberg ETF analyst Eric Balchunas that most ETFs typically record less than $1 million in initial trading volume, making the performance of GDLC exceptionally strong for a new crypto product.
Varying exposure to five major digital assets is provided by GDLC through a single regulated vehicle, which consists of 72% Bitcoin, 17% Ethereum, 6% XRP, 4% Solana, and 1% Cardano.
Over $931 million in assets is managed by the fund, which makes it one of the largest diversified crypto investment products available to US investors.
Regulatory Approval Granted
Restrictions were lifted by the regulator after generic listing standards were revealed by the SEC on Sept. 18. The standards are designed to streamline future crypto ETF approvals across Nasdaq, Cboe, and NYSE.
Navigating a complex regulatory approval process was required for the ETF conversion, with a stay order initially imposed by the SEC following July approval.Restrictions were lifted by the regulator after generic listing standards were revealed by the SEC on Sept. 18. The standards are designed to streamline future crypto ETF approvals across Nasdaq, Cboe, and NYSE.
The need for individual Rule 19b-4 filings for each product is eliminated by the new framework, which instead requires only Form S-1 submissions with 75-day review periods.
Delays are aimed to be reduced by the standards, which also maintain threshold requirements for market capitalization, trading volume, and liquidity that not all products will immediately satisfy.
The SEC’s crypto task force was credited by Grayscale CEO Peter Mintzberg for providing “regulatory clarity our industry deserves,” signaling improved cooperation between industry participants and regulators after years of contentious review processes.
Basket-Style Crypto Funds
It was projected by Bloomberg analyst James Seyffart that basket-style crypto ETFs could develop into the second- or third-largest category of digital asset products, trailing only single-asset Bitcoin funds that now manage over $100 billion.
A substantial investor appetite for regulated crypto exposure through traditional brokerage accounts is shown by the precedent.
Applications for similar multi-asset crypto funds have been submitted by several issuers, including Bitwise, Hashdex, and Franklin Templeton. Currently pending SEC approval, the generic listing standards could accelerate this process, potentially creating a new wave of diversified crypto investment products.
GDLC’s previous closed-end format is replaced by the ETF structure, which includes in-kind creation and redemption mechanisms. This provides better price discovery and a reduction of premiums or discounts to net asset value.
Continued institutional and retail demand for crypto exposure is suggested by the strong debut volume, via regulated investment vehicles.
