As a seasoned researcher with years of experience tracking and analyzing the cryptocurrency market, I can confidently say that Grayscale’s latest move to convert its Digital Large Cap Fund into an ETF could be a game-changer. My crystal ball might be a bit blurry when it comes to predicting regulatory decisions, but the recent court victory against the SEC gives me hope.
According to leading expert Eric Balchunas, Grayscale’s endeavor to transform its multi-token investment fund into an Exchange Traded Fund (ETF) could potentially be a success.
This past week, the prominent crypto investment firm submitted an application to transform their Digital Large Cap Fund (GDLC) into a Exchange Traded Fund (ETF).
2023 saw me, as a crypto investor, experience a significant victory when Grayscale triumphed in court against the SEC. The regulator had initially denied Grayscale’s petition to transform the Grayscale Bitcoin Trust (GBTC) into an Exchange-Traded Fund (ETF). In response, Grayscale took legal action against the SEC to contest their decision. To my delight, the court ruled in favor of Grayscale, which ultimately paved the path for the approval of numerous Bitcoin ETFs in early January.
Later, the company went on to convert Grayscale Ethereum Trust (ETHE) into an ETF.
It’s important to mention that Grayscale’s ETFs were often seen as negative triggers for the market because of their significant withdrawals, which suggested pessimism among investors.
Grayscale’s GDLC provides access to not just popular cryptocurrencies like Bitcoin and Ethereum, but also lesser-known ones including Ripple (XRP) and Solana (SOL).
If approved, the proposed ETF would provide investors with exposure to these tokens.
Balchunas posits that an Exchange-Traded Fund (ETF) might be able to hold a minimal amount of less liquid assets without issue. This proposition, if realized, could make the SEC more likely to endorse it. Moreover, he suggested that if this were to occur, it would give the pioneer of such a combined crypto ETF a significant advantage in the competition to launch this product first.
Solana and XRP account only for 4.16% and 1.76% of GDLC’s total holdings, respectively.
As a crypto investor, I’ve been keeping an eye on the potential launches of Solana and XRP ETFs in the United States. While there’s been some excitement about these prospects, it seems quite unlikely that they will receive approval from the SEC anytime soon.
Read More
- SOL PREDICTION. SOL cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD COP PREDICTION
- USD PHP PREDICTION
- USD ZAR PREDICTION
- Top gainers and losers
- TON PREDICTION. TON cryptocurrency
- ENA PREDICTION. ENA cryptocurrency
- PHB PREDICTION. PHB cryptocurrency
2024-10-16 23:52