SEC Accelerates Approval for Grayscale’s Digital Cap Fund Listing

The U.S. Securities and Exchange Commission approved the rule change by the NYSE Arca for Grayscale’s fund in an accelerated manner. Grayscale Digital Large Cap Fund mainly comprises Bitcoin, with notable Ethereum, Solana, and XRP allocations. This shift reflects regulatory support for diversified crypto ETFs.

The conversion from OTC trust to a spot ETF aims to enhance liquidity and transparency for investors. The ETF structure introduces daily creation/redemption processes and NAV calculations, settled in cash. This framework addresses previous concerns about cash premiums and limited redemption options. The SEC mandates that at least 85% of the fund’s assets must be digital assets underlying SEC-approved ETPs, adding a layer of investor protection.

SEC Approves Accelerated Grayscale Fund Listing

This change is significant as it marks a transition for Grayscale’s fund from OTC trading to an exchange-listed ETF, expanding accessibility and potential investor interest.

Despite the strategic approval, key figures such as Grayscale’s CEO, Michael Sonnenshein, did not publicly comment. However, the broader crypto community views the decision as a regulatory milestone, potentially paving the way for more diversified crypto ETFs in the U.S.

Accelerated approval of the proposed rule change (SR-NYSEARCA-2024-87) [allows listing] in accordance with Section 19(b)(2) of the Exchange Act — U.S. Securities and Exchange Commission

Grayscale ETF Could Spur Market Growth

Did you know? The SEC’s approval of ETFs has been a significant step towards mainstream adoption of cryptocurrencies.

Bitcoin’s current price stands at $106,989.24, with a market cap of $2.13 trillion and a coinmarketcap dominance of 64.69%. Over the past 24 hours, Bitcoin’s trading volume has hit $46.00 billion, increasing by 8.65%. Bitcoin has gained 0.52% over the past week, with a notable 11.18% rise in 60 days.

Insights from the Coincu research team suggest that Grayscale’s ETF conversion could prompt further regulatory acceptance of diverse crypto funds. Market transparency and liquidity improvements could drive institutional involvement in digital assets, impacting financial and technological advancements in the crypto space.