The United States Securities and Exchange Commission (SEC) is currently analyzing a proposal from Grayscale Investments, which could mark a new chapter in the financial market.
The firm is looking to convert its Digital Large Cap Fund (GDLC) into an index investment fund (ETF) covering multiple cryptocurrencies. The move is a step closer to the first multi-asset crypto ETF, with a decision expected within 45 to 90 days. GDLC provides investors with access to a portfolio that includes Bitcoin (BTC), Ethereum, Solana and XRP, with Bitcoin and Ethereum accounting for 94% of the total assets under management of over $558 million.
The conversion request was submitted two weeks ago through the filing of Form 19b-4, a key requirement in this transition process. Since then, investor sentiment has improved, with the GDLC’s discount to net asset value reduced from 30% to 17%, indicating optimism regarding the ETF’s approval.
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The political landscape in the United States could also influence the future of altcoin ETFs. Donald Trump’s victory in the upcoming presidential election could bring significant changes in the leadership of the SEC. “This could lead to a more favorable stance on crypto, as some industry experts speculate that a Trump administration may be more open to approving altcoin ETFs and reevaluating which digital assets qualify as securities,” points out a market analyst.
Other financial institutions are also exploring similar opportunities. Companies like VanEck, 21Shares, and Canary Capital have filed applications with the SEC to launch ETFs based on specific cryptocurrencies, such as Solana, XRP, and Litecoin. With multiple applications under review, a favorable approval for Grayscale could trigger greater adoption of crypto ETFs in the United States.
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SEC Reviewing Grayscales Proposal for a Cryptocurrency ETF