Originally published on: November 04, 2024
On November 4th, Grayscale, a prominent asset manager, announced that US regulators are currently considering a request to approve the first-ever exchange-traded fund (ETF) that would encompass a diverse selection of cryptocurrencies, including various altcoins.
The New York Stock Exchange Arca recently submitted a petition to the Securities and Exchange Commission seeking authorization to list shares of the Grayscale Digital Large Cap Fund (GDLC). If approved, this rule change would make history as the first national securities exchange regulation allowing the trading of multi-crypto asset ETFs.
The GDLC comprises a portfolio of cryptocurrencies such as Bitcoin, Ether, Solana, Avalanche, and XRP. Despite being established in 2018, the fund has not yet been available for trading on public exchanges. As of November 4th, GDLC holds an impressive $534 million in assets under management.
Upon filing the request to convert the fund into an ETF on October 16th, Grayscale faces competition from other proposed index funds from asset managers like Hashdex and Franklin Templeton. However, GDLC sets itself apart by including altcoins such as Solana, Avalanche, and XRP, in contrast to funds that initially aim to focus solely on Bitcoin and Ether.
Industry experts emphasize that crypto index ETFs are poised to be the next big trend in the market following the successful listing of ETFs for Bitcoin and Ethereum earlier this year. Katalin Tischhauser, head of investment research at Sygnum, has pointed out the efficiency and appeal of index ETFs for investors looking to diversify their crypto holdings.
In response to the regulatory developments, David LaValle, Grayscale’s global head of ETFs, expressed confidence in the thoughtful approach taken by Grayscale and NYSE Arca in developing a ruleset for the trading of multi-crypto asset ETFs within existing SEC standards.
As the crypto market continues to evolve, the potential approval of Grayscale’s groundbreaking crypto index ETF opens up exciting opportunities for investors and signals a new era in cryptocurrency trading strategies. Stay tuned for more updates on this transformative development in the world of digital assets.
