The U.S. Securities and Exchange Commission (SEC) has approved the rule change for the Grayscale fund, allowing it to trade as an ETF. This move reflects regulatory support for diversified crypto ETFs.
SEC Approval for Grayscale
The SEC expedited the approval of NYSE Arca's rule change for the Grayscale Digital Large Cap fund, which is primarily composed of Bitcoin, with allocations also for Ethereum, Solana, and XRP.
Benefits of ETF
The conversion from an OTC trust to an ETF aims to enhance liquidity and transparency for investors. The ETF structure introduces daily creation/redemption processes and NAV calculations, providing investor protection.
Market Impact
This change could be significant for expanding accessibility to investment in broad market assets and potentially attracting greater investor interest. The Grayscale ecosystem is associated with hopes for further development of diverse crypto ETFs in the U.S.
The SEC's approval opens new possibilities for the implementation of crypto ETFs, which may lead to increased transparency and liquidity in the cryptocurrency market.
