The US Securities and Exchange Commission (SEC) has given the green light for Grayscale’s Digital Large Cap Fund (GDLC) to be listed and traded as a spot exchange-traded fund (ETF) on NYSE Arca.
The announcement on July 1 came after Grayscale’s updated S-3 filing, showing that the company is still in talks with the SEC. Nate Geraci, the President of ETF Store, expected this approval and indicated a hopeful view for Grayscale’s proposal.
Started in 2018, Grayscale’s GDLC fund lets investors access five key digital assets: Bitcoin, Ethereum, XRP, Solana, and Cardano. As of June 30, the fund mainly invests in Bitcoin, accounting for about 80% of its assets. The GDLC fund has grown a lot, now managing almost $775 million in assets.
Bloomberg ETF analysts James Seyffart and Eric Balchunas previously stated that the SEC’s deadline to decide on Grayscale’s proposal was July 2. They estimated a high chance of about 95% for the approval of the conversion to a spot ETF.
They felt more confident in the SEC working with Grayscale, which led them to raise the chances of getting most spot crypto ETF filings approved to 90% or more.
