Grayscale has announced that its Digital Large Cap Fund (GDLC) has officially converted into an exchange-traded fund (ETF), easing investor access to digital assets.
SEC Approval for ETF Conversion
On July 1, the SEC approved Grayscale's revised filing to convert GDLC into an ETF, allowing the fund to offer regulated exposure to Bitcoin, Ethereum, XRP, Solana, and Cardano. The ETF structure replaces the previous OTC model, simplifying access for investors.
Trading Structure and Asset Composition
The ETF improves market pricing by narrowing the gap between NAV and share price. As of June 30, NAV per share was $48.83, while the market price was $47.95. GDLC now holds $774.8 million in assets, with Bitcoin constituting 80.8% of the portfolio, followed by Ethereum (11.07%), XRP (4.63%), Solana (2.75%), and Cardano (0.75%). Transitioning to NYSE Arca provides liquidity and transparency.
New SEC Framework May Accelerate Crypto ETFs
The SEC may introduce listing standards to accelerate ETF approvals. It has been reported that qualifying tokens could get listed in just 75 days. This could reduce paperwork and delays for fund issuers, allowing more crypto ETFs to enter the market quickly.
Grayscale's ETF launch sets a precedent for future products, as the SEC continues to shape a framework for the integration of cryptocurrencies into traditional finance.
