NYSE Arca has filed with the SEC to list a Grayscale exchange-traded fund (ETF) offering a broad range of cryptocurrencies, marking a significant step forward in expanding institutional access to digital assets.
The Grayscale Digital Large Cap Fund, a crypto index portfolio created in 2018, includes popular cryptocurrencies like Bitcoin, Ethereum, and Solana alongside other altcoins. The request follows the company’s recent filing on October 16 to convert the fund into an ETF.
If approved, the Grayscale Digital Large Cap Fund ETF would introduce investors to a mixed basket of digital assets, positioning itself as a more inclusive alternative to traditional ETFs focused on Bitcoin or Ether.
The proposed fund stands out from its competitors by tracking the CoinDesk Large Cap Select Index, which includes five distinct digital assets, providing a broader approach to those seeking exposure beyond BTC and ETH.
The fund currently holds approximately $565 million in assets under management (AUM).
Competitor ETFs
Grayscale’s competition includes offerings from Hashdex and Franklin Templeton, both of which have filed index ETFs that would initially focus only on Bitcoin and Ether.
Additionally, VanEck, 21Shares, and Canary Capital have submitted multiple filings to list spot ETFs connected to Solana, XRP, and Litecoin.
Industry analysts suggest that the outcome of the upcoming US presidential election could have a significant impact on the regulatory landscape for crypto ETFs.
Eric Balchunas, an analyst at Bloomberg ETF, recently said that a victory for former US President Donald Trump could prompt the SEC to take a more pro-crypto stance, potentially speeding up approvals of ETFs owning various crypto assets.
The NYSE proposal highlights the growing demand for crypto index ETFs. While the SEC has yet to approve a large-scale crypto index ETF, the filing could signify a new wave of crypto investment options, opening the door for diverse, institution-friendly access to the expanding crypto market. digital assets.
