Grayscale’s Digital Large Cap Fund (GDLC) is moving closer to becoming an Exchange-Traded Product (ETP) after NYSE Arca’s Form 19b-4 was published in the Federal Register. This initiates a review process that could take up to 240 days, marking a significant step toward regulatory approval for multi-crypto asset ETPs.
This would allow investors to have a broader choice of assets beyond Bitcoin and Ether. Grayscale’s GDLC is publicly traded and holds Bitcoin, Ether, SOL, XRP, and AVAX. The investment company has faced regulatory hurdles in securing approval for its GDLC as an ETP, but argues its SEC-reporting status, high correlation between Bitcoin’s spot and future prices, and transparency mitigate concerns.
The firm aims to offer traditional investors regulated access to diversified digital assets, catering to increasing investor demand for diversified portfolios. Grayscale’s CEO, Peter Mintzberg, stated that the firm aims to lead in digital asset investing, and the GDLC currently manages over $530 million in assets, with a portfolio comprising 76.53% Bitcoin and 16.92% Ether, among other digital assets.
David LaValle, the investment company’s Global Head of ETFs, highlighted that the proposed rule change would allow funds to invest at least 90% in established commodities like Bitcoin and Ether. If approved, this would enhance GDLC’s strategy of tracking the CoinDesk Large Cap Select Index. Grayscale’s commitment to building regulated investment vehicles shows its goal of providing efficient options for investors navigating the evolving crypto space.
