FINANCEREGULATION

Grayscale's Large Cap Fund (GDLC) Seeks ETF Conversion, SEC May Approve Multi-Cryptocurrency ETFs

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Grayscale

The asset management company Grayscale recently announced that its Grayscale Digital Large Cap Fund (GDLC) proposal to convert into an ETF and list on the New York Stock Exchange (NYSE) has been published in the Federal Register by the U.S. Securities and Exchange Commission (SEC), officially commencing a 240-day listing review process.

GDLC to Become the First Multi-Cryptocurrency ETF under Arca 8.800-E

Grayscale Digital Large Cap Fund (GDLC) is currently trading on the OTC market and, if approved, will become the first multi-cryptocurrency ETF listed and traded under the New York Stock Exchange Arca 8.800-E rules. Grayscale stated that this would set a precedent for the national stock exchange, allowing the market to trade investment products that contain a variety of cryptocurrencies, not just limited to "single cryptocurrency trading" like Bitcoin or Ethereum.

GDLC ETF conversion proposal published in the Federal Register

Note: Arca 8.800-E refers to the rules governing the listing and trading of products that manage and oversee commodity and digital asset interests.

GDLC Contains Five Major Cryptocurrencies, Managing Assets Exceeding $530 Million

As of November 1, 2024, GDLC's current assets under management exceed $530 million. Grayscale mentioned that GDLC will re-adjust the included crypto assets based on CoinDesk's Large Cap Index (DLCS) every quarter.

The main cryptocurrencies currently held by GDLC are as follows:

  • Bitcoin 76.53%
  • Ethereum 16.92%
  • Solana 4.36%
  • XRP 1.63%
  • Avalanche 0.56%

Still Needs to Go Through a 240-Day Review Process

Grayscale had previously submitted the application on 10/16 to convert GDLC into an ETF, allowing GDLC to transition from the existing OTC market trading to listing on the New York Stock Exchange NYSE. Shortly after, NYSE also filed relevant applications with the U.S. Securities and Exchange Commission (SEC). On 11/4, the application proposal was published in the Federal Register, but it still needs to go through a 240-day review process, during which the SEC will decide whether to approve GDLC's listing.

Grayscale Digital Large Cap Fund GDLC will convert to an ETF, while the new institution Canary Capital applies for a Litecoin ETF.