Grayscale Files With SEC to Convert Multi-Crypto Fund Into ETF

CryptoNews.com

2024-10-15 23:51:10

Grayscale Investments US SEC

The proposal follows the SEC’s successful approval of spot Bitcoin and Ethereum ETFs. Last updated:

October 16, 2024 03:51 EDT

Author

Sujha Sundararajan

Author

Sujha Sundararajan

About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Author Profile

Copied

Last updated:

October 16, 2024 03:51 EDT

Why Trust Cryptonews With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews Digital assets manager Grayscale has filed with the US Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an exchange-traded fund (ETF).

The over-the-counter trading multi-crypto fund holds a mixed portfolio of tokens, including Bitcoin, Ethereum, Solana, Ripple and Avalanche.

Per an October 14, 19b-4 filing, the New York Stock Exchange (NYSE) has requested the conversion on behalf of Grayscale. The filing has proposed a rule change to accommodate the listing of the new ETF.

Grayscale’s Digital Large Cap Fund (GDLC) derives value from a basket of large-cap digital assets as security. The fund predominantly invests in Bitcoin, with 75.59%, followed by Ethereum, weighing 17.83%. The portfolio also includes smaller allocations to SOL, XRP, and AVAX.

The proposal follows the SEC’s successful approval of spot Bitcoin and Ethereum ETFs, which has led to anticipation of XRP ETF approval. However, skeptics have raised alarms that an XRP ETF would repeat the past letdowns.

Some experts have predicted that the US regulator is unlikely to approve ETFs tracking the price of XRP anytime soon. This is because of the ongoing Ripple Labs’ legal battle with the SEC.

Yuriy Brisov from a UK-based crypto law firm Digital & Analogue Partners told Cryptonews that unlike Bitcoin and Ethereum, which have a “clear set of rules”, Ripple has “more problems to deal with.”

Grayscale’s Potential Fifth ETH Launch

Grayscale has already launched its Bitcoin Trust (GBTC), Bitcoin Mini Trust (BTC), Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH). The asset manager’s foray into the fifth multi-token ETF highlights its aim to diversify offerings to cater to investor demands.

Per data from Bloomberg and JPMorgan, Grayscale Bitcoin and Ethereum funds have seen investors drain $20 billion and $3 billion out of the funds, respectively.

The BTC and ETH trusts are the lower-fee versions designed to attract a wide range of retail investors. The mini funds have drawn over $700 million in inflows together.

MULTI-4,78%

BTC-3,9%

ETH-3,89%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.