The Securities and Exchange Commission (SEC) has formally acknowledged Grayscale’s amended application to convert its Digital Large Cap Fund into a spot ETF. The fund includes several popular cryptocurrencies.
SEC Approval and Its Significance
The SEC has approved Grayscale's amended application for the creation of a spot ETF. The fund contains cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano. If approved, the ETF would be available on major stock exchanges, making it easier for regular investors to buy and trade cryptocurrencies.
Future of Grayscale and New ETFs
Previously, the SEC approved Grayscale’s Bitcoin futures ETF and allowed the conversion of its Bitcoin Trust into a spot Bitcoin ETF in January 2024 after a legal victory by Grayscale. Recently, the company proposed a new ETF for Cardano, named Grayscale Cardano Trust. However, this product is completely new, unlike Grayscale's other ETFs.
Issues with Other Grayscale ETFs
Despite the success with other cryptocurrencies, the SEC has delayed its decision on two of Grayscale’s other proposals related to spot ETFs for Avalanche and Cardano.
The acknowledgment of Grayscale's application to convert its Digital Large Cap Fund into a spot ETF is a significant step. This could greatly impact the accessibility of cryptocurrencies for a wider audience, despite current issues with other ETFs.
