The U.S. Securities and Exchange Commission (SEC) prepares to rule on Grayscale's proposal to convert its Digital Large Cap Fund into an exchange-traded fund (ETF).
Grayscale's Fund Conversion Proposal
The fund in question holds a basket of major cryptocurrencies, including XRP, Solana (SOL), and Cardano (ADA). Grayscale initially filed to convert the multi-coin fund into an ETF last October.
Deadlines and Expectations from SEC
Bloomberg's ETF analysts previously opined that the product had the highest chance of being greenlit by the SEC. According to prominent ETF analyst Nate Geraci, the SEC's deadline to rule on GDLC is this week.
Prospects for Altcoin ETFs
If approved, this would be the first U.S. ETF that offers exposure to such altcoins as XRP and SOL. Grayscale's court victory over the SEC could pave the way for Bitcoin ETFs approval in early 2024.
Thus, it will soon be revealed whether the SEC will approve Grayscale's ETF, potentially impacting the cryptocurrency market and the future development of ETF products in the U.S.
