Grayscale’s Digital Large Cap Fund ETF (GDLC) recorded nearly $22 million in trading volume during its Sept. 19 debut, with 381,298 shares changing hands as the multi-token basket fund launched on NYSE Arca.
The debut volume is aligned with recent crypto ETF launches, including the REX-Osprey Dogecoin ETF that captured $6 million during its Sept. 18 opening hour.
Bloomberg ETF analyst Eric Balchunas previously noted that most ETFs typically see less than $1 million in debut volume, making GDLC’s performance particularly strong for a new crypto product.
GDLC provides varying exposure to five major digital assets through a single regulated vehicle, comprising 72% Bitcoin, 17% Ethereum, 6% XRP, 4% Solana, and 1% Cardano.
The fund manages over $931 million in assets, making it one of the largest diversified crypto investment products available to US investors.
Regulatory path to launch
The ETF conversion required navigating complex regulatory approval processes after the SEC initially imposed a stay order following July approval.
The regulator lifted restrictions only after the SEC revealed generic listing standards on Sept. 18, designed to streamline future crypto ETF approvals across Nasdaq, Cboe, and NYSE.
The new framework eliminates the need for individual Rule 19b-4 filings for each product, instead requiring only Form S-1 submissions with 75-day review periods.
The standards aim to reduce delays while maintaining threshold requirements for market capitalization, trading volume, and liquidity that not all products will immediately satisfy.
Grayscale CEO Peter Mintzberg credited the SEC’s crypto task force for providing “regulatory clarity our industry deserves,” signaling improved cooperation between industry participants and regulators after years of contentious review processes.
Basket-style crypto ETFs
Bloomberg analyst James Seyffart projected that basket-style crypto ETFs could evolve into the second- or third-largest category of digital asset products, following single-asset Bitcoin funds that now manage over $100 billion.
The precedent demonstrates substantial investor appetite for regulated crypto exposure through traditional brokerage accounts.
Multiple issuers, including Bitwise, Hashdex, and Franklin Templeton, have submitted applications for similar multi-asset crypto funds, which are currently pending SEC approval. The generic listing standards could accelerate the process, potentially creating a new wave of diversified crypto investment products.
The ETF structure replaces GDLC’s previous closed-end format with in-kind creation and redemption mechanisms, providing better price discovery and reduced premiums or discounts to net asset value.
The strong debut volume suggests continued institutional and retail demand for crypto exposure through regulated investment vehicles.
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Coinspeaker
Cathie Wood’s Ark Invest Goes on COIN Buying Spree, Buys $2.2M of Coinbase Shares
Ark Invest, the investment management firm led by Cathie Wood, purchased a total of $2.2 million worth of Coinbase (COIN) shares, marking it the first purchase in nearly a month’s time since September 11.
On Tuesday, October 8, Ark Invest purchased a total of 12,994 COIN shares through its Fintech Innovation ETF (ARKF). With this purchase, the asset manager now holds $67 million worth of COIN stock, which represents 7.43% weightage in the total fund’s value. As of Tuesday’s closing, the Coinbase (COIN) share price is trading at 167.69.
Ever since the last purchase of COIN shares last month on September 11, the stock has gained 6.5%. However, it is still available at a 20% discount from the month of August. ARK may be preparing for a potential rally in the COIN stock, driven by a typical October surge in Bitcoin’s
BTC
$62 100
24h volatility:
0.7%
Market cap:
$1.23 T
Vol. 24h:
$26.58 B
price.
In another recent development, Ark Invest also offloaded a massive 135,665 shares of Robinhood (HOOD), valued at a staggering $3.5 million. This recent sell-off comes as part of complying with an SEC regulation that prohibits funds from holding over 5% exposure to companies earning over 15% of their revenue from the sale of the securities. HOOD shares climbed nearly 10% on Tuesday, closing at $25.61.
Ark Invest often shuffles its holdings periodically as part of its portfolio rebalancing measures. In the past, it sold a large number of COIN shares when it was trading at around $280 in 2023.
Coinbase vs SEC Legal Battle Continues
This year, the COIN stock has been largely underperforming despite a strong surge in Bitcoin price and other altcoins. Furthermore, it has underperformed other market payers like MicroStrategy. One of the major reasons behind this is the ongoing legal battle between Coinbase and the US SEC.
Coinbase Global Inc. is continuing its legal battle against the SEC’s rejection of its petition for new rulemaking on digital assets. Coinbase is pushing for clear regulations to define when a digital asset qualifies as a security. This action comes amid a notable rise in US-listed cryptocurrency stocks, fueled by the Federal Reserve’s decision to lower interest rates.
In the overseas market, Coinbase has also been undertaking necessary measures to comply with the local jurisdictions. Last week, Coinbase announced that it would delist all non-compliant stablecoins by December this year in Europe, in order to comply with the MiCA rules.
Cathie Wood’s Ark Invest Goes on COIN Buying Spree, Buys $2.2M of Coinbase Shares
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