SEC Greenlights Grayscale ETF Featuring BTC, ETH, SOL, XRP, ADA
Grayscale’s Digital Large Cap Fund Receives SEC Approval for Spot ETF Conversion
SEC Greenlights Grayscale’s Fund Transformation
The Securities and Exchange Commission (SEC) has officially sanctioned the transition of Grayscale’s Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF), according to recent filings.
Fund Composition and Benchmarking
This fund is designed to track the performance of several prominent cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, and Cardano. Currently, Bitcoin constitutes approximately 80% of the fund’s total assets. The SEC’s communication highlighted that GDLC is indexed to the CoinDesk 5 Index (CD5).
Fund Performance and Management
Launched in February 2018, GDLC has successfully garnered nearly $755 million in assets under management, with an expense ratio set at 2.5%.
Industry Reactions and Future Prospects
Andy Baehr, head of product and research at CoinDesk Indices, expressed enthusiasm over the SEC’s approval, stating that it opens the door for this Grayscale fund to be listed as an ETF. He emphasized that this development allows investors and financial advisors to access a diverse array of leading digital assets through a single investment vehicle. Baehr also noted that this fund is poised to become the largest multi-token digital asset ETF globally.
Upcoming SEC Decisions on Other Funds
Following Grayscale’s approval, crypto asset manager Bitwise is awaiting a decision from the SEC regarding the conversion of its Bitwise 10 Crypto Index Fund (BITW) into an ETF. BITW primarily invests 79% in Bitcoin, with the remainder allocated to Ethereum, XRP, Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot.
