The U.S. Securities and Exchange Commission (SEC) has made a decision to convert the Grayscale investment fund into an exchange-traded fund (ETF), which may positively influence other applications in the cryptocurrency market.
SEC Approval
In an official statement, the SEC announced that it has approved the rule change regarding the conversion of Grayscale Digital Large Cap Fund LLC. 'Pursuant to Section 19(b)(2) of the Exchange Act, the proposed rule change (SR-NYSEARCA-2024-87), as amended by Amendment No. 1, is hereby approved on an expedited basis,' the document states.
Grayscale Fund Composition
The fund, currently available over-the-counter (OTC) only to accredited investors, consists of approximately 80% Bitcoin, 11% Ethereum, and single-digit percentages of Solana (SOL), Cardano (ADA), and XRP.
Potential Implications
This decision may create positive momentum for similar applications for transformation of cryptocurrency funds into ETFs. Other companies that are in the process of filing applications may benefit from this precedent in the market.
The SEC's approval of the conversion of the Grayscale fund into an ETF is a significant step that could stimulate interest in the regulatory approval of cryptocurrency-related funds.
