SEC Clears First Multi-Token Crypto ETF With 70% Bitcoin Allocation

The Securities and Exchange Commission approved the first exchange-traded fund containing multiple cryptocurrencies, allowing Grayscale Investments to convert its Digital Large Cap Fund into an ETF structure. The decision represents a significant regulatory shift after months of approvals limited to single-token Bitcoin and Ether products.

What to Know:

• The fund allocates more than 70% to Bitcoin and 17% to Ether, with remaining assets in XRP, Solana and Cardano
• The approval signals broader SEC acceptance of cryptocurrency products beyond individual Bitcoin and Ether ETFs
• Multiple firms have pending applications for similar multi-token funds, suggesting a wave of new products

Regulatory Shift Creates New Investment Options

Grayscale's Digital Large Cap Fund will transition from a trust structure to an ETF, providing regulated access to five cryptocurrencies through traditional brokerage accounts. Chief Communications Officer Andrea Williams confirmed the conversion. The fund maintains heavy concentration in established tokens while offering exposure to smaller alternative coins.

The approval follows a pattern of regulatory hesitation followed by acceptance.

Earlier this year, the SEC initially resisted similar multi-token products before gradually warming to cryptocurrency investments during the current administration.