Breaking: Grayscale Files To Convert SOL, XRP and AVAX Trust Into ETF

Godfrey Benjamin
October 16, 2024
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Grayscale Files To Convert SOL, XRP and AVAX Trust Into ETF

Highlights

  • Grayscale files to convert its Large Cap Fund to spot ETF
  • This fund comprises of Bitcoin, Ethereum, XRP, Avalanche, and Solana
  • More crypto ETFs are making their way into the market

The crypto industry’s largest asset manager, Grayscale Investments, has applied to convert its Digital Large Cap Fund into an ETF product. The Grayscale Large Cap Fund comprises of Bitcoin, Ethereum, Solana, XRP and Avalanche as its components.

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Grayscale and the Crypto ETF Backing

The firm has sent its 19b-4 form to the United States Securities and Exchange Commission (SEC), requesting permission to convert the fund. The Digital Currency Group-affiliated firm is one of the major influences behind the emergence of spot Bitcoin ETF in the US. Barely a year after it won the SEC in a suit to convert GBTC into spot Bitcoin ETF, it is pioneering a new ambitious move.

It also converted its Ethereum Trust into spot ETFs in July after the Commission approved the product in the U.S. The proposed conversion of the Grayscale Digital Large Cap Fund to ETF comes after Canary Capital made a push for Litecoin ETF. In its S-1 registration, the latter highlighted Litecoin as one of the longest running blockchains with 100% uptime. It believes in the coin’s capacity to offer investors access to enterprise-grade use cases.

Per the current outlook, there is a clear evidence that institutional investors on Wall Street want more exposure to crypto. Even ETF Store President Nate Geraci outlined the growing demand for more crypto-based ETFs. While the prospect of these new ETF filings remain unknown, the broader industry has grown quite optimistic.

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XRP And LTC ETF Filings on SEC’s Desk

A week ago, Canary Capital filed to list XRP ETF. Bitwise initially lodged the first of such applications with the regulator a few days before.

Notably, Canary Capital attributed its new interest to the “progressive regulatory environment coupled with growing demand from investors for sophisticated access to cryptocurrencies beyond Bitcoin and Ethereum.”

Meanwhile, Grayscale’s move to have this Digital Large Cap Fund converted to ETF products supports Canary’s stance. So far, Bitwise and Canary Capital are yet to receive any notification of acknowledgement from the SEC on their respective XRP ETF filings. It is not yet clear how the Commission would respond to these multiple filings.

Should it not go in favor of Grayscale, the investment asset management firm may employ the same approach it used with its GBTC conversion, featuring lawsuit.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.