Grayscale moves closer to ETF with SEC approval of Digital Fund

The Securities and Exchange Commission (SEC) has confirmed Grayscale's application to convert its Digital Large Cap Fund into an exchange-traded fund (ETF). 

This confirmation comes just two weeks after Grayscale submitted its application, marking a significant step toward launching a multi-asset crypto ETF.

Grayscale now awaits a decision from the SEC, which is expected within the next 45 to 90 days. 

The Digital Large Cap Fund (GDLC) manages assets including well-known cryptocurrencies such as Solana and XRP, which the SEC classifies as securities. 

The approval brings Grayscale closer to becoming a pioneer in the multi-asset crypto ETF space. 

As the U.S. presidential election approaches, potential changes in leadership could influence SEC policies regarding cryptocurrency regulations. 

A victory for Donald Trump could lead to a shift in how the SEC approaches altcoin-related ETFs, with industry experts suggesting that it might ease the approval process. 

Mert, CEO of Helius Lab, commented, “Trump winning makes the path to a SOL ETF much easier and perhaps a more friendly SEC that doesn’t classify everything a security.” 

When Grayscale initially filed its application, the GDLC was trading at a significant discount of over 30%, which has since narrowed to 17%. 

This improvement indicates growing investor optimism regarding the potential approval of the GDLC ETF. 

Grayscale's Digital Large Cap Fund allows investors exposure to leading cryptocurrencies such as Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), XRP (CRYPTO:XRP), and Avalanche (CRYPTO:AVAX), with Bitcoin and Ethereum accounting for 94% of the fund's holdings. 

Currently managing over $558 million in assets, Grayscale is positioning itself at the forefront of cryptocurrency investment products. 

The upcoming decision from the SEC will be closely watched by investors and industry stakeholders alike as it could set a precedent for future ETF applications in the cryptocurrency sector.