Originally published on: October 30, 2024
In a recent filing with United States regulators, NYSE Arca, a securities exchange, has requested permission to list a Grayscale exchange-traded fund (ETF) that comprises a diverse range 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 popular cryptocurrencies like Bitcoin, Ether, and Solana, among others.
Currently holding around $565 million in assets under management (AUM), the Grayscale Digital Large Cap Fund aims to convert into an ETF following its filing on Oct. 16. This move comes just days before NYSE’s recent filing for permission to list the fund.
Competition in the realm of proposed index funds is heating up, with asset managers like Hashdex and Franklin Templeton in the mix. Grayscale’s unique fund tracks a variety of alternative cryptocurrencies beyond Bitcoin and Ether, such as Avalanche and XRP, setting it apart from its competitors.
Analysts predict that crypto index ETFs will be the next major focus for issuers following the successful listing of BTC and ETH ETFs earlier this year. Katalin Tischhauser, head of investment research at Sygnum, believes that index ETFs offer efficiency for investors, much like traditional index funds like the S&P 500.
Amidst a flurry of filings for proposed crypto products, industry experts are closely monitoring the implications of the US presidential election on regulatory outcomes. With the potential for a shift in SEC leadership depending on election results, issuers like Cboe, Canary Capital, and Bitwise are actively seeking approval for various crypto ETFs, including those focused on assets like SOL, XRP, and Litecoin.
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