Mm.
Greyscale Investments launched the first multi-token crypto ETF in the US.
The Greyscale Coin desk Crypto 5 ETF Ticker GDLC began trading on the New York Stock Exchange.
Now the fund includes the five largest digital assets Bitcoin, Ether, XRP, Solana, and Cardano.
They make up over 90% of the crypto market.
Joining me to weigh in this morning is Zach Panel, head of research for Greyscale Investments.
Zach, good morning.
Thank you so much for joining me.
So first and foremost, can you walk us through the strategic rationale behind launching a multi-token crypto ETF in the current market environment?
Absolutely great to be with you again, Remy.
You know, Grayscale has been out in the market every day talking to mainstream investors about crypto, and one of the things that we hear over and over again is that they are eager to build crypto assets into diversified portfolios but are sometimes overwhelmed by the complexity of the space, the complexity of blockchain technology, all the variable tokens to them.
And just like in other asset classes, many of them prefer an index-based approach, you know, in equity markets or in bond markets, it's very common for investors to access these asset classes with an index-based approach that captures the broad beta of the asset class, automatically rebalances over time, and removes some of the complexity involving with picking the right stocks or picking the right bonds.
That is exactly what the solution is for for crypto.
We've actually been running this product since 2018 and it has delivered great outcomes for investors already.
But now we are able to offer to investors in their preferred most efficient product type, which is the exchange traded product or or ETP.
So delighted to be able to offer this this product, the grayscale coin desk Crypto 5 ETF product that is a key solution for for investors looking for a crypto allocation that gives them a beta to the asset class and reduces some of the complexity in the space.
That's exactly what this product is designed to do.
And speaking of allocation, tell us a little bit more about the allocation decision for this fund, 70% Bitcoin and 20% ether.
So does this reflect your views on risk as well as return across the crypto asset class?
Yeah, this is a market capitalization weighted product in the same way that index products and equities with S&P 500 based products or NASDAQ 100 based products are market capitalization weighted.
This is a market cap weighted crypto index product, so It's not reflecting the views of grayscale.
It is just giving investors access to the largest projects in the in the space in one efficient vehicle.
So it is weighted to Bitcoin and Ethereum, the two largest assets, but in a market capitalization way.
And we think that the top 5 tokens is roughly the sweet spot for crypto.
It's not necessary to include, you know, 500 tokens or something like that like we have in the S&P 500, top 5 tokens that already gives you 90% of the market.
A cap.
So it's a great way to get efficient access to crypto beta in any diversified portfolio in a in a single fund in exactly the same way that broad-based index ETFs work in equity markets or fixed income markets.
And Zach, building on what you just said, when it comes to ETPs, tell us about some of the challenges when it comes to structuring as well as managing a multi-asset crypto fund compared to say single asset products and how do you address liquidity as well as volatility concerns?
Greyscale has been in the business of managing crypto investment products for more than 10 years and has lots of experience dealing with with Bitcoin, with ether, but also many other token types.
We offer around 40 different investment products that really cover the spectrum of everything that's going on in the crypto space or with public blockchain technology.
These crypto ETP products work just as efficiently as ETF products in other asset classes like, like equities, and all of that complexity is abstracted away for end investors.
So Greyscale takes care of rebalancing the portfolio with its partnerships with market makers, etc. each quarter as the index rebalances so.
It does require some complexity, but that's what we're here to do, you know, for end investors.
The key thing is this is a one stop shop solution.
If investors want to get access to crypto, they want to participate in this growing asset class over time, this is a solution for them.
And Zach, today is the first day of fall and that means Q4 2025 is right around the corner.
So what is your take on the regulatory landscape here in the US and how do you expect SCC approval impacting product design as well as future launches?
Yes, it does finally feel like a fall here in the New York City area and so starting to have these conversations about the 4th quarter.
Look.
This year, crypto has been driven by really a 12 punch of macroeconomic demand for the asset class and regulatory clarity driving adoption, and both of those things we think can continue in the 4th quarter and beyond.
On the macro side, the Fed is cutting rates, the dollar is relatively weak.
This will drive demand for Bitcoin and other assets in crypto.
And then on the side of regulatory clarity, as you mentioned, the SEC last week made some announcements about ETF approval process for commodity-based ETP products that's going to allow us to expand the amount of assets that are available to investors in this structure.
And at the same time, the US Senate is working on legislation related to crypto.
We had one piece of bipartisan legislation on stablecoins passed this summer.
We think we're going to see another piece of major crypto legislation hopefully passed and signed by the president by the end of the year.
So macro demand, regulatory clarity, that's what's been powering the asset class year to date.
I think that can continue into Q4 and into 2026.
OK, Zach, well, thank you so much for joining us and as always, thank you so much for sharing all of your insights.
It's my pleasure.
Thank you.
