The Era of Crypto Indices Begins
On July 1, 2025, the SEC opened a new chapter for crypto investing by approving the transformation of the Grayscale Digital Large Cap Fund (GDLC) into a spot Exchange-Traded Fund (ETF), which will be trading on NYSE Arca with $775 million in assets under management.
For Grayscale, this marks a significant shift from the closed-end fund structure that previously limited investor access. Now, both institutional and retail investors can gain crypto exposure through a familiar, regulated vehicle without the need to manage wallets or private keys.
Unfortunately, as with other American ETFs, investors from the EU will have limited access, typically requiring the status of a professional investor or the use of a broker outside the EU zone.
What captures attention isn't just the size, but the composition:
From Index Universe to CoinDesk 5
The ETF offers diversified exposure across major cryptocurrencies, with Bitcoin dominating at ~80% of the portfolio, complemented by Ethereum, XRP, Solana, and Cardano.
While most assume the ETF simply tracks the top 5 cryptocurrencies by market cap, it actually follows the CoinDesk 5 Index (CD5)—a complex methodology designed for institutional investors, providing subtle hints about where institutional money might flow next, making it worth a closer look.
CD5 sits at the top of a four-tier methodology developed by CoinDesk Indices. Unlike popular market cap rankings on sites like CoinGecko or CoinPaprika, CD5 was built specifically for institutional investors. This means its complex methodology may surprise crypto enthusiasts—it's far more selective than simply picking the largest coins by market cap.
Index Universe
Everything begins with the Index Universe—CoinDesk's foundational methodology for determining which cryptocurrencies are even worth considering for institutional investment.
The Index Universe starts with the top 250 cryptocurrencies by market capitalization, then applies a set of strict quality filters:
