Grayscale Investments, the largest asset management company in the cryptocurrency industry, has applied to convert its Digital Large Cap Fund into an ETF product. Grayscale Large Cap Fund consists of Bitcoin, Ethereum, Solana, XRP, and Avalanche.
Backing Grayscale and Crypto ETFs
The company sent a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) seeking permission to convert the fund. This Digital Currency Group affiliate is one of the companies that had a major impact on the emergence of spot Bitcoin ETFs in the United States. Just a year after winning a lawsuit against the SEC to convert GBTC into a spot Bitcoin ETF, the company is ushering in another ambitious move.
It also converted the Ethereum Trust into a spot ETF in July after the European Commission approved the product in the US. The proposed conversion of the Grayscale Digital Large Cap Fund into an ETF comes after Canary Capital promoted a Litecoin ETF. The latter highlighted Litecoin as one of the longest-running blockchains among S-1 registrations with 100% uptime. The company believes in the coin’s ability to provide investors with access to enterprise-grade use cases.
Based on the current outlook, there is clear evidence that Wall Street institutional investors are looking to increase their exposure to cryptocurrencies. Nate Geraci, president of ETF Store, also outlined the growing demand for more crypto-based ETFs. While the outlook for these new ETF filings remains uncertain, the industry as a whole has become very optimistic.
Submission of XRP and LTC ETFs to the SEC Desk
A week ago, Canary Capital filed to list its XRP ETF. Bitwise initially filed the first such application with regulators a few days ago.
Notably, Canary Capital attributes its renewed interest to a “progressive regulatory environment coupled with growing demand from investors for advanced access to cryptocurrencies beyond Bitcoin and Ethereum.” I think that I am doing it.
Meanwhile, Grayscale’s move to convert its digital large-cap fund into an ETF product confirms its canary stance. So far, Bitwise and Canary Capital have yet to receive approval notices from the SEC for their respective XRP ETF applications. It is not yet clear how the European Commission will respond to these multiple applications.
If not in favor of Grayscale, investment asset managers may adopt the same approach they used during the GBTC conversion, which involved litigation.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-world applications of blockchain technology and the innovations driving public acceptance and global integration of emerging technologies. His desire to educate people about cryptocurrencies has inspired his contributions to well-known blockchain-based media and sites. Benjamin Godfrey loves sports and farming. X, Follow him on Linkedin
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