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NYSE Arca seeks approval to list Grayscale crypto ETF

NYSE Arca seeks approval to list Grayscale crypto ETF

Grafa2024/10/31 10:00
By: Liezl Gambe
BTC+0.60%SOL+6.05%ETH+5.42%

NYSE Arca has submitted a filing with U.S. regulators to list a new Grayscale exchange-traded fund (ETF) that holds a diversified portfolio of spot cryptocurrencies.

According to the filing on October 29, the proposed ETF would convert Grayscale’s existing Digital Large Cap Fund, which manages about $565 million, into an exchange-traded product.

Launched in 2018, the Grayscale Digital Large Cap Fund tracks a wide crypto index, including Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), Solana (CRYPTO:SOL), Avalanche (CRYPTO:AVAX), and XRP (CRYPTO:XRP).

The fund aims to provide investors exposure to a mix of digital assets instead of focusing only on major coins like Bitcoin and Ether.

The fund currently follows the CoinDesk Large Cap Select Index and includes five different cryptocurrencies.

This development coincides with efforts by other asset managers like Hashdex and Franklin Templeton, who have also filed for index-based ETFs.

However, while these new funds primarily target Bitcoin and Ether, Grayscale’s broader approach is aimed at capturing a wider spectrum of digital assets.

According to Katalin Tischhauser, head of investment research at Sygnum, “The next logical step is index ETFs because indices are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto.”

Several proposed crypto ETFs are facing regulatory scrutiny amid the ongoing political climate.

Industry experts suggest that the upcoming U.S. presidential election could play a key role in shaping future crypto regulations.

According to Bloomberg ETF analyst Eric Balchunas, a Trump victory could bring favorable conditions for the crypto industry, while a win for Vice President Kamala Harris might lead to delays in regulatory progress.

The outcome of these regulatory and political developments is likely to influence how the market reacts to new crypto ETFs like Grayscale’s proposal.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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