SEC Set to Decide on Grayscale’s Spot ETF for Bitcoin, Ether, XRP, ADA
SEC Set to Decide on Grayscale’s Spot Crypto ETF Proposal
Key Highlights
SEC Acknowledges Grayscale’s ETF Filing
The U.S. Securities and Exchange Commission (SEC) has recognized Grayscale’s revised application to transform its Digital Large Cap Fund into a spot exchange-traded fund (ETF).
ETF Composition
This proposed ETF aims to track significant cryptocurrencies, including bitcoin (BTC), ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
Grayscale’s ETF Journey
The SEC has until July 2 to make a decision regarding Grayscale’s request to convert its Digital Large Cap Fund (GDLC) into a spot ETF, as noted by Bloomberg ETF analysts. The GDLC fund is structured to follow a blend of five leading crypto assets, predominantly bitcoin, which constitutes 80.8% of the fund, with the remainder allocated to ethereum (11.07%), XRP (4.63%), Solana (2.75%), and Cardano (0.75%).
As of June 27, Grayscale reported that the fund managed nearly $762 million in assets. The SEC’s acknowledgment of Grayscale’s amended S-3 filing occurred on Monday, amidst a surge of activity in the crypto ETF sector, where the SEC is currently reviewing several spot crypto applications from major financial institutions. This filing signifies Grayscale’s ongoing efforts to broaden its crypto investment portfolio beyond its flagship bitcoin and ethereum trust products.
Industry Insights
Nate Geraci, President of ETF Store, commented that the amendment indicates the SEC’s continued dialogue with Grayscale regarding the GDLC fund’s conversion proposal. He expressed optimism about the likelihood of the SEC approving the application, suggesting that if GDLC receives the green light, it could lead to the approval of individual spot ETFs for XRP, Solana, Cardano, and other cryptocurrencies, which are currently undergoing a more extensive review process.
Social Media Buzz
Geraci shared his thoughts on Twitter, highlighting the final SEC deadline for the GDLC ETF and emphasizing the potential for approval, which could set a precedent for future single-asset spot ETFs.
Conclusion
As the SEC approaches its decision deadline, the crypto community watches closely, anticipating the implications of Grayscale’s ETF proposal on the broader market. The outcome could significantly influence the future landscape of cryptocurrency investments and ETFs.
