As a seasoned crypto investor with a decade of experience navigating the digital asset landscape, I find the recent developments surrounding Grayscale’s Digital Large Cap Fund (GDLC) particularly intriguing. The SEC’s decision to initiate the review process for the proposed ETF conversion is a significant step forward in the mainstream adoption of crypto assets.
The U.S. Securities and Exchange Commission (SEC) has made public the necessary documentation for upgrading a Grayscale digital asset fund into an exchange-traded fund, which can be found in the Federal Register.
According to Grayscale’s announcement on November 4th, the examination of the NYSE Arca application for changing the Grayscale Digital Large Cap Fund (a multi-token fund) into an ETF by the SEC has officially begun.
As a researcher, I’m sharing that I recently noticed NYSE Arca submitted Form 19b-4 for trading shares of the Grayscale fund. The Securities and Exchange Commission (SEC) has now added this proposal to their Federal Register, marking the beginning of their review process for the proposed rule change.
According to American securities regulations, the review period may last as long as 240 days. Form 19b-4 outlines NYSE Arca’s proposal to widen the scope of exchange-traded products that include commodities such as Bitcoin (BTC) and Ethereum (ETH), as well as other digital assets.
Grayscale and NYSE Arca are carefully planning a proposed set of rules for listing and trading multi-crypto ETP shares within the current Securities and Exchange Commission (SEC) framework. We are excited to collaborate with regulators in a productive manner, aiming to expand the regulatory boundaries for digital assets in the U.S., ultimately benefiting our clients.
David LaValle, Grayscale’s global head of ETFs.
Initially, Grayscale made GDLC available through a private offering back in February 2018. This was followed by its public debut on the stock market in November 2019. Later, in July 2022, the product was recognized as a reporting entity by the SEC.
At present, this investment fund contains a total of five different cryptocurrencies. Besides Bitcoin (BTC) and Ethereum (ETH), the others are Solana (SOL), Ripple (XRP), and Avalanche (AVAX). This fund operates on over-the-counter markets, and as of November 1, 2024, it managed assets worth more than half a billion dollars ($530 million) in total.
Should it be given the green light, the Grayscale product will mark history as the initial multi-token exchange-traded product available for trading on a national securities market.
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2024-11-04 20:00