Grayscale Investments is on the move again, seeking to reshape the crypto investment scene by converting its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF). The request, filed through the New York Stock Exchange, is knocking on the U.S. Securities and Exchange Commission’s (SEC) door, hoping for a green light. This maneuver might sound familiar because Grayscale has already pulled off similar feats with its Bitcoin and Ethereum trusts, turning them into spot ETFs earlier this year.
Old Structure Out, New Moves In
Grayscale’s Digital Large Cap Fund, which holds crypto giants like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX), is getting a revamp. It used to work as a closed-end fund, making life hard for investors who wanted to redeem their shares easily. But if the conversion goes through, it’ll operate as an ETF instead, offering a smoother and more liquid experience. Investors could buy shares tracking the fund’s assets without dealing with the nitty-gritty of owning actual coins.
And it’s no small fry we’re talking about here. BTC gets the biggest bite of the pie in the GDLC, followed closely by ETH and other heavy hitters in the top 20 by market cap. Grayscale’s push reflects the surging appetite for more diversified crypto exposure, but some question how the SEC will respond, especially with Solana facing legal fire.
Solana Under the Microscope, SEC Still Wary
Solana isn’t getting off easy. The SEC has been gunning at it, accusing companies of selling SOL as an unregistered security, creating some tension in the regulatory ether. Yet, Grayscale isn’t backing off, perhaps sensing that it can navigate these regulatory waters, just as it did with Bitcoin and Ethereum. After all, the SEC wasn’t too friendly toward Ethereum either, but it eventually allowed ETH ETFs to trade starting in late May.
Grayscale told Decrypt in a statement that they’ve submitted the filing to uplist GDLC as a diversified multi-crypto asset exchange-traded product (ETP) on NYSE Arca. The company’s clear aim is to make crypto assets more accessible to everyday investors.
This new request comes after Grayscale scored a big win in court, where a judge sided with the firm, criticizing the SEC for lacking a solid reason to deny the Bitcoin ETF conversion. Grayscale’s persistence might just push the SEC into more crypto territory.
Leave a Reply
You must be logged in to post a comment.