SEC Confirms Grayscale’s Application for Multi-Asset Crypto ETF
The SEC has confirmed Grayscale’s application to convert its Digital Large Cap Fund (GDLC) into an ETF, indicating progress toward a multi-asset crypto ETF. A decision is anticipated within 45 to 90 days, which could position GDLC as the first such ETF in the market. The fund offers exposure to various cryptocurrencies, including Bitcoin (BTC), Ethereum, Solana, and XRP, with Bitcoin and Ethereum comprising 94% of its over $558 million in assets.
Grayscale filed its application two weeks ago, involving the submission of a Form 19b-4. Following this filing, investor sentiment improved, evidenced by GDLC’s discount to net asset value decreasing from 30% to 17%, reflecting optimism for ETF approval.
The upcoming U.S. presidential elections may influence altcoin-related ETFs. If Donald Trump wins, potential changes at the SEC could lead to a more favorable approach toward crypto, with speculation that a Trump administration might support the approval of altcoin ETFs and reevaluate the classification of certain digital assets as securities.
This development aligns with similar initiatives by other financial firms. VanEck, 21Shares, and Canary Capital have also submitted SEC applications for ETFs linked to individual cryptocurrencies like Solana, XRP, and Litecoin. With the SEC reviewing multiple applications, Grayscale's potential approval could represent a significant milestone for cryptocurrency ETF adoption in the U.S.