SEC approves Grayscale’s proposal to convert BTC, ETH, XRP, ADA large-cap fund into a spot ETF

The US Securities and Exchange Commission has approved the listing and trading of Grayscale’s Digital Large Cap Fund (GDLC) as a spot exchange-traded fund (ETF) on NYSE Arca, according to a newly published order granting accelerated approval on July 1, first shared by Phoenix News.

The decision follows Grayscale’s submission of an amended S-3 filing to the SEC just last week, which was seen as evidence of active dialogue between the issuer and the regulator. ETF Store President Nate Geraci predicted Grayscale’s bid would be successful.

Introduced in 2018, Grayscale’s GDLC fund offers investors a single vehicle to gain exposure to five of the largest digital assets, including Bitcoin, Ethereum, XRP, Solana, and Cardano. The portfolio is heavily weighted toward Bitcoin at approximately 80% as of June 30.

The fund has grown to nearly $775 million in assets under management, according to Grayscale’s latest data.

Bloomberg ETF analysts James Seyffart and Eric Balchunas previously noted that the SEC’s deadline to rule on Grayscale’s proposal to convert its GDLC into a spot ETF fell on July 2. The analysts also assigned high odds, around 95%, that the SEC would approve the conversion.

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According to ETF Store’s Geraci, if GDLC gets the nod, it could clear a path for single-asset spot ETFs tied to crypto assets like XRP, Solana, and Litecoin.