Grayscale Moves to Launch Crypto Index ETF with Diverse Asset Basket
Grayscale, a major asset manager, has taken a significant step towards launching a new cryptocurrency ETF.
The company recently submitted a filing to the U.S. Securities and Exchange Commission (SEC), aiming to convert its existing Digital Large Cap Fund into an exchange-traded fund (ETF) that includes a range of spot cryptocurrencies.
The filing, submitted on April 1, marks Grayscale’s effort to transition the fund, which was established back in 2018, into an ETF. Currently, the fund holds a diversified portfolio consisting of Bitcoin, Ethereum, Solana, XRP, and Cardano. With over $600 million in assets under management, the fund is presently accessible only to accredited investors, as noted on Grayscale’s website.
This move comes after NYSE Arca, a prominent U.S. securities exchange, applied for permission in October to list Grayscale’s index fund. The shift towards offering an ETF follows the SEC’s recent approval of mixed crypto index ETFs sponsored by Hashdex and Fidelity, though those funds are limited to Bitcoin and Ether.
In recent months, regulatory conditions have become more favorable, with the SEC showing a more lenient stance towards digital assets. As a result, ETF issuers are now ramping up efforts to bring more crypto-related products to market.
Crypto index ETFs are gaining attention, particularly after the debut of BTC and ETH-based ETFs last year. Analysts believe that the next logical step is the introduction of diversified crypto index ETFs, similar to how traditional investors use the S&P 500 ETF for broader exposure. Katalin Tischhauser, head of investment research at Sygnum, suggests that such products will appeal to investors seeking a more comprehensive approach to the digital asset market.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
