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Grayscale plans new crypto ETF for major digital assets

Grayscale plans new crypto ETF for major digital assets

GrafaGrafa2024/10/16 04:00
By:Mahathir Bayena

Grayscale is moving forward with plans to launch a new cryptocurrency exchange-traded fund (ETF) that could include major assets such as Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), XRP (CRYPTO:XRP), and Avalanche (CRYPTO:AVAX)

According to a recent Bloomberg report, this initiative marks Grayscale's attempt to convert its existing Grayscale Digital Large Cap Fund (GDLC) into a publicly traded ETF, providing broader access to institutional and retail investors.

The GDLC fund currently manages $520.8 million in assets, offering a diversified portfolio that includes some of the leading cryptocurrencies. 

Grayscale’s proposed ETF could make it easier for investors to gain exposure to these digital assets without directly holding them. 

The current allocation of the fund comprises 75% Bitcoin and 20% Ethereum, reflecting a long-term investment strategy. 

Smaller allocations include 4.21% in Solana and 1.78% in XRP, while AVAX makes up a more modest portion of the fund.

Despite challenges, such as the bankruptcy of its crypto lending arm Genesis, Grayscale’s parent company, Digital Currency Group (DCG), remains a significant player in the cryptocurrency sector. 

DCG’s ongoing involvement with major firms underscores its resilience, even as the crypto market undergoes regulatory scrutiny and volatility.

The potential conversion of GDLC into an ETF represents a strategic move to provide more flexibility and transparency to investors. 

This development comes as other major financial firms, including BlackRock and Fidelity, show increased interest in launching cryptocurrency-related ETFs, suggesting a growing institutional appetite for regulated crypto investment products.

Grayscale’s planned ETF is expected to maintain a stable ratio of its assets, though the exact proportions will be outlined in the upcoming regulatory filing. 

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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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