Washington, Wednesday, November 06, 2024– The US Securities and Exchange Commission (SEC) has initiated a formal 240-day review period for Grayscale Investments’ proposal to uplist its Digital Large Cap Fund (GDLC) as an exchange-traded product (ETP) on NYSE Arca, according to a company update.
The application, filed by NYSE Arca in October, aims to convert GDLC from its current status on OTC Markets to a regulated exchange.
The proposed conversion would mark a milestone in the US crypto industry, as it introduces a diversified multi-crypto ETP format under NYSE Arca Rule 8.800-E.
Grayscale stated that with this rule change, it wants to bring multi-crypto ETPs into the US regulatory framework and continue delivering client-focused, future-forward solutions.
Grayscale’s proposal is part of a broader wave of crypto investment products, with other managers, including Hashdex and Franklin Templeton, focusing primarily on Bitcoin and Ether ETFs.
Industry analysts predict that multi-crypto ETFs could become the next major trend, offering a level of diversified exposure akin to traditional stock indices like the S&P 500.
As the SEC evaluates GDLC’s application, firms like Canary Capital and Bitwise have also submitted applications for ETFs tied to XRP and Litecoin, underscoring the rising demand for accessible crypto investment vehicles.
