Originally published on: October 30, 2024
In a recent filing on Oct. 29, NYSE Arca has requested approval from United States regulators to list a Grayscale exchange-traded fund (ETF) that holds a diversified portfolio of spot cryptocurrencies.
The Grayscale Digital Large Cap Fund, established in 2018 but not yet traded on the exchange, includes a crypto index portfolio featuring top cryptocurrencies like Bitcoin, Ether, and Solana, among others.
Currently managing around $565 million in assets, Grayscale filed for the conversion of the fund into an ETF just days before NYSE’s filing, showcasing the growing interest in cryptocurrency index funds.
Competing with offerings from asset managers Hashdex and Franklin Templeton, Grayscale’s fund stands out by including alternative cryptocurrencies like Avalanche and XRP in its index basket.
While the Hashdex and Franklin Templeton funds initially focus on Bitcoin and Ether, Grayscale’s unique approach tracks the CoinDesk Large Cap Select Index, holding a total of five diverse crypto assets.
Industry experts predict that crypto index ETFs will be the next big trend after the successful listings of BTC and ETH ETFs earlier this year. Katalin Tischhauser, head of investment research at Sygnum, believes that index ETFs are efficient for investors similar to traditional stock market indices like the S&P 500.
The surge in filings for crypto products is also seen as a strategic move ahead of the US presidential election, with analysts speculating on potential regulatory changes based on the election outcome.
As the crypto market continues to evolve, the demand for diversified investment options like the Grayscale Cryptocurrency Index ETF is expected to grow. Stay updated with the latest trends and developments in the crypto industry by subscribing to our Crypto Biz newsletter for valuable insights every Thursday.
