The United States Securities and Exchange Commission (SEC) has officially acknowledged NYSE Arca’s application to convert Grayscael’s Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF).
The NYSE’s application seeks to transform the GDLC—a fund that includes major digital assets such as Bitcoin, Ethereum, Solana, XRP, and Avalanche—into an ETF.
According to the official website, the GDLC is currently traded over-the-counter and has assets under management (AUM) of $524 million. The fund currently comprises about 77% Bitcoin and 17% Ethereum, with the remaining allocation in Solana, XRP, and Avalanche.
SEC has formally acknowledged filing to convert Grayscale Digital Large Cap Fund (GDLC) into an ETF…
GDLC holds approx 77% btc, 17% eth, & remainder in sol, xrp, & avax.
SEC now soliciting public comments & decision clock starts ticking. pic.twitter.com/5zl6vHmyKo
— Nate Geraci (@NateGeraci) October 30, 2024
The SEC’s acknowledgement of the filing initiates a review period, with the agency now soliciting public comments. If approved, this ETF would be the first multi-asset, spot-based crypto ETF in the U.S., providing investors with a regulated vehicle for exposure to a diversified range of digital assets. According to the regulator, a decision on the application will come within 45 to 90 days.
This application is notable given Grayscale’s role in crypto ETF history. In January 2024, the SEC approved the first set of spot Bitcoin ETFs, following a lawsuit Grayscale filed in June 2022 after the SEC denied its attempt to convert its flagship Bitcoin Trust (GBTC) into an ETF.
At the time, Grayscale argued that a spot Bitcoin ETF would provide investors with a more secure, accessible route to Bitcoin exposure compared to derivative-backed products.
The approval of Grayscale’s multi-asset fund as an ETF would mark another milestone in expanding regulated crypto investment options in the United States. It would make GDLC the first multi-fund spot crypto ETF in the country.
Meanwhile, the development follows another initiative by Grayscale that has been praised by stakeholders as groundbreaking The investment manager recently introduced the “Grayscale XRP Trust” to provide accredited investors with a new opportunity to gain exposure to the native token of Ripple’s XRP Ledger (XRPL). Notably, Grayscale stated that this introduction is the first phase in a four-phase process aimed at converting the Trust into an ETF.
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