SEC Greenlights First Multi-Token Crypto ETF, Opening Door to Diversified Exposure
The Securities and Exchange Commission has cleared its first multi-token cryptocurrency exchange-traded fund (ETF), giving Grayscale Investments the green light to convert its Digital Large Cap Fund into an ETF structure.
The new ETF will allocate more than 70% of its assets to Bitcoin, with Ether holding around 17%. The remaining assets will be divided among XRP, Solana, and Cardano.
This decision represents a significant regulatory shift, as the SEC has previously limited approvals to single-token Bitcoin and Ether products. Multiple firms have pending applications for similar multi-token funds, suggesting a wave of new products in the pipeline.
Bloomberg Intelligence analyst James Seyffart expects additional approvals soon, predicting that 'crypto index or basket products are going to be one of the largest categories of crypto ETPs.'