SEC Reviews Grayscale’s Bid to Launch Crypto ETF
The SEC has confirmed Grayscale’s application to convert its Digital Large Cap Fund into a multi-asset crypto ETF, with a decision expected in 45-90 days.
The SEC has confirmed Grayscale’s application to transform its Digital Large Cap Fund (GDLC) into an ETF, signaling a potential step closer to launching a multi-asset crypto ETF. This decision, expected within 45 to 90 days, could make GDLC the first of its kind in the market. Grayscale’s Digital Large Cap Fund provides exposure to various cryptocurrencies, including Bitcoin (BTC), Ethereum, Solana, and XRP. Bitcoin and Ethereum currently make up 94% of the fund's assets, which total over $558 million.
Two weeks ago, Grayscale filed its application, which aims to convert GDLC into an ETF, a process that involves filing a Form 19b-4. Since the filing, investor sentiment has improved, with GDLC’s discount to net asset value shrinking from 30% to 17%, showing optimism for the fund's potential ETF approval.
Upcoming presidential elections in the U.S. could also impact the fate of altcoin-related ETFs. If Donald Trump wins, it may bring changes to the SEC, possibly including a new chairman. This could lead to a more favorable stance on crypto, as some industry experts speculate that a Trump administration might be more open to approving altcoin ETFs and reassessing which digital assets are classified as securities.
This development follows similar moves by other financial companies. VanEck, 21Shares, and Canary Capital have also submitted applications to the SEC for ETFs tied to individual cryptocurrencies like Solana, XRP, and Litecoin. With the SEC reviewing multiple applications, Grayscale’s potential approval could mark a turning point for broader cryptocurrency ETF adoption in the U.S.
