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Sujit Kumar
Nov 2, 2024

SEC Acknowledges Grayscale’s Multi-Asset Spot ETF Proposal Including XRP

SEC Acknowledges Grayscale
The U.S. Securities and Exchange Commission (SEC) has recently acknowledged Grayscale’s application to convert its Digital Large Cap Fund (GDLC) into a multi-asset spot exchange-traded fund (ETF), which would be the first of its kind in the U.S. if approved. This fund includes major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX), aiming to provide broad exposure across top digital assets.

Opening the Door for Public Feedback

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.

GDLC Fund Overview

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.

Potential Implications for XRP and Crypto ETFs

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.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
SEC Acknowledges Grayscale’s Multi-Asset Spot ETF Proposal Including XRP
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.