US SEC Publishes Grayscale’s Digital Large Fund Cap Filing In Federal Register
Highlights
- The US SEC has published Grayscale's application to convert its Digital Large Cap Fund to an ETF in the Federal Register.
- This formally kickstarts the 240-day window which the Commission has to review and either approve or deny the application.
- This will be the first filing that the Commission will be deliberating that borders on other crypto assets besides Bitcoin and Ethereum.
The US Securities and Exchange Commission (SEC) has published Grayscale’s 19b-4 filing for its Digital Large Cap Fund in the Federal Register. This significant development has officially kickstarted the US SEC’s review process for the asset manager’s application to convert this fund into an ETF.
US SEC Publishes Grayscale’s Filing In Federal Register
Grayscale announced in a press release that the US SEC has published the NYSE Arca’s 19b-4 filing to list and trade its Digital Large Cap Fund as an Exchange-Traded Product (ETP) in the Federal Register.
This formally initiates the review process for the Commission to review and possibly approve the application. As noted in the press release, this review process can take up to 240 days before the regulator must decide whether to approve or deny the application.
If the US SEC approves the NYSE Arca’s proposed rule change, it would be the first time a national securities exchange would list and trade shares of multi-crypto asset ETPs. The SEC’s acknowledgment of the 19b-4 filing comes around two weeks after the asset manager filed to convert the Digital Large Cap Fund into an ETF.
According to Grayscale, as of November 1, the GDLC currently holds over $530 million in assets under management (AuM) for the fund. The fund holds Bitcoin, Ethereum, Solana, XRP, and Avalance, which are weighted according to their respective market caps.
The Significance Of Grayscale’s Filing
Grayscale noted that the NYSE Arca’s proposed rule change aims to revise how the exchange defines ETPs that hold commodities and digital assets beyond Bitcoin and Ethereum. Indeed, the filing is significant considering that it is the first filing that the US SEC will be deliberating on that doesn’t just border on the two largest cryptos by market cap.
Therefore, the SEC’s comments on the application would be worth keeping an eye on, especially considering that the Commission has doubts about the non-security status of other cryptos besides Bitcoin and Ethereum.
The SEC has yet to react to Van Eck’s and 21Shares’ Spot Solana ETF applications, which indicates that it still believes SOL is a security, as it claimed when it initially filed charges against Binance last year.
Meanwhile, the Commission has yet to react to the XRP ETF filings from Bitwise and Canary Capital. 21Shares also recently joined the XRP ETF race last week when they filed the form S-1 for their XRP ETF with the US SEC.
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
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.
