SEC Approves Grayscale's Conversion of BTC, ETH, XRP, ADA Funds to ETF???
The U.S. Securities and Exchange Commission (SEC) has approved Grayscale's proposal to convert its digital large-cap fund into a spot exchange-traded fund (ETF).
This decision integrates Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), effectively providing investors with more investment options.
Grayscale's GDLC fund primarily invests in Bitcoin, accounting for over 80% of the fund's holdings. This is followed by Ethereum, which makes up 11%, while Solana, XRP, and Cardano have smaller allocations of 2.8%, 4.8%, and 0.8%, respectively. This approval is significant as it offers investors a regulated way to invest in multiple mainstream cryptocurrencies.
The approval also solidifies Grayscale's previous successes with its Bitcoin and Ethereum funds, as Grayscale successfully converted its Bitcoin trust into a spot Bitcoin ETF in 2024. Following this success, the SEC seems more inclined to approve similar products.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) is considering allowing cryptocurrency ETFs to be issued without submitting a 19b-4 application, which represents a significant procedural shift. Currently, any new exchange-traded products must undergo a lengthy 19b-4 application approval process.
If the SEC advances this reform, it could streamline the approval process for cryptocurrency-based ETFs, making it easier and faster for other fund managers to bring products to market.
The aim is to establish a more standardized listing procedure for cryptocurrency ETFs. If successful, this change will lead to a more efficient approval process, thereby accelerating the development of new cryptocurrency ETFs.
