“With the government shutdown, that’s unfortunately delayed some of the progress that we had been making on these products.” – 03:10
Remy Blaire welcomes Krista Lynch, the Senior Vice President of ETF Capital Markets at Grayscale Investments, to discuss the latest developments in the cryptocurrency market. The episode kicks off with the exciting news that Grayscale has just rung the opening bell at the New York Stock Exchange, marking a significant milestone for the firm as it leads the charge in offering diversified crypto trading products.
Krista shares insights about Grayscale’s newly uplisted GDLC, the first multi-token Exchange Traded Product (ETP) in the U.S. This innovative product consists of a five-token basket that tracks the five largest cryptocurrencies, excluding meme coins and stablecoins. Krista explains that the GDLC allows investors to capture approximately 90% of the returns from the crypto universe through a single investment, making it an efficient way to diversify within the crypto space. She breaks down the composition of the GDLC, noting that it is comprised of about 75% Bitcoin and Ethereum, while also providing exposure to altcoins, which have gained attention following a recent liquidation event in the crypto market.
The conversation then shifts to the topic of staking in the cryptocurrency world. Krista simplifies the concept of staking, explaining how it works in proof-of-stake cryptocurrencies and how Grayscale is introducing staking through ETPs. This development enables investors to turn their crypto investments into yielding products, earning rewards for their staking activities. Krista also discusses Grayscale’s ETH Trust and ETH Mini Trust, both of which have incorporated staking, along with their Solana product, which is on track to become an ETP once the U.S. government reopens.
As the discussion progresses, Remy and Krista address the ongoing U.S. government shutdown and its impact on the regulatory landscape for crypto products. Krista notes that while there has been progress with generic listing standards over the summer, the shutdown has delayed some approvals. Despite this setback, she expresses optimism about Grayscale’s readiness to launch new products once the government resumes operations.
Looking ahead to 2025, Krista highlights the improved regulatory environment for crypto, which has led to a surge in filings and innovation in the space. The episode also explores the growing interest from institutional investors in cryptocurrency, with ETPs opening new avenues for both retail and institutional investment.
In the closing moments, Krista emphasizes the importance of understanding investor demand and the regulatory landscape as they approach year-end and look toward 2026. She discusses the need to identify niches within the crypto market and how Grayscale’s GDLC product can serve as a broad exposure option for investors.