Grayscale’s proposal, submitted via NYSE Arca, requests a rule change to allow GDLC shares to be traded as an ETF. Under Section 19(b)(1) of the 1934 Securities Exchange Act, the SEC’s acknowledgment of this application initiates a public feedback period, providing an opportunity for discussion on the approval of multi-asset crypto ETFs in the U.S.
Established in 2018, the GDLC fund is currently valued at around $558.84 million, with BTC and ETH making up the majority at 76.26% and 17.20%, respectively. SOL, XRP, and AVAX comprise smaller allocations, at 4.38%, 1.59%, and 0.57%, offering a diverse mix of digital assets for investors.
If approved, the GDLC fund could mark a major step in legitimizing digital assets within regulated markets and might lead to increased institutional exposure to XRP. This could also positively impact pending spot-based XRP ETF applications from Canary Capitals and Bitwise, even as the SEC maintains regulatory scrutiny. Analysts suggest that regulatory challenges and ongoing legal proceedings between the SEC and Ripple Labs might influence these pending applications.
Grayscale’s proposal, if greenlit, would represent a critical milestone for digital asset ETFs, potentially paving the way for more diversified crypto ETFs and sparking investor interest across multiple assets.