SEC Approves Grayscale Digital Large Cap Fund Conversion into ETF
The Securities and Exchange Commission (SEC) has approved the conversion of the Grayscale Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF). This ETF is the first of its kind as it offers exposure not only to Bitcoin (BTC) and Ethereum (ETH), but also XRP and several other altcoins.
This approval was granted after the SEC acknowledged Grayscale’s amended S-3 registration form. The decision came just before the final approval deadline on July 2nd.
This move also marks the beginning of what is being called the “summer of crypto ETFs,” as several similar products are currently awaiting approval from US market regulators.
Proposals for ETFs covering individual cryptocurrencies like XRP, Solana (SOL), and other tokens are also in the submission process. Bloomberg analysts believe there is a significant chance these products will be approved in the second half of this year.
Previously, Brazil became the first country to approve a spot XRP ETF back in February through the launch of a product by Hashdex on the Brazilian Stock Exchange (B3). In North America, a spot XRP ETF has also been available through Purpose Investments on the Toronto Stock Exchange (TSX) since June.
Currently, globally available spot-based ETFs only include Bitcoin and Ethereum. However, the SEC has shown signs of being more open, such as approving the Bitwise product that combines BTC and ETH in January.
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