NYSE Arca seeks SEC approval for Grayscale’s crypto index ETF
NYSE Arca has filed an application with the SEC to list a Grayscale exchange-traded fund (ETF) featuring a diverse array of cryptocurrencies, marking a significant push to expand institutional access to digital assets.
The Grayscale Digital Large Cap Fund, a crypto index portfolio created in 2018, includes popular cryptocurrencies like Bitcoin, Ethereum, and Solana alongside other altcoins. The application follows the firm’s recent Oct. 16 filing to convert the fund into an ETF.
If approved, the Grayscale Digital Large Cap Fund ETF would introduce investors to a mixed basket of digital assets, positioning itself as a more inclusive alternative to traditional Bitcoin or Ether-focused ETFs.
The proposed fund stands out from competitors by tracking the CoinDesk Large Cap Select Index, which includes five distinct digital assets, offering a broader approach for those seeking exposure beyond BTC and ETH.
The fund currently holds approximately $565 million in assets under management (AUM).
Competing ETFs
Grayscale’s competition includes offerings from Hashdex and Franklin Templeton, both of which have filed for index ETFs that would initially focus on Bitcoin and Ether alone.
Additionally, VanEck, 21Shares, and Canary Capital have submitted multiple filings to list spot ETFs connected to Solana, XRP, and Litecoin.
Industry analysts suggest that the outcome of the upcoming US presidential election could significantly impact the regulatory landscape for crypto ETFs.
Bloomberg ETF analyst Eric Balchunas recently commented that a win by former US President Donald Trump might prompt the SEC to adopt a more pro-crypto stance, potentially accelerating approvals for ETFs with diverse crypto asset holdings.
NYSE’s proposal highlights the growing demand for crypto index ETFs. While the SEC has yet to approve a broad-based crypto index ETF, the filing may signify a new wave of crypto investment options, opening the door to diversified, institution-friendly access to the expanding digital asset market.
