SEC approves Grayscale Index ETF conversion, clears Solana, XRP, Cardano for spot trading

The Securities and Exchange Commission (SEC) has approved the connection to person the Grayscale Digital Large Cap Fund into an exchange-traded money (ETF), completing the conversion of the crypto scale merchandise into an ETF structure. 

According to a July 1 filing, the ETF volition contented spot units that way a handbasket of the 5 largest cryptocurrencies by marketplace cap: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). 

As elaborate successful the order, the portfolio weights astatine support were astir 80% Bitcoin, 11% Ethereum, 4.8% XRP, 2.8% Solana, and 0.8% Cardano. 

Grayscale reports non-GAAP assets nether absorption of astir $775 million for the merchandise arsenic of June 30. 

The fund, which archetypal launched successful 2018 and has been trading connected OTC Markets nether the ticker GDLC since 2019, volition present articulation NYSE Arca’s ETF roster. Once operational details are finalized, it volition modulation to continuous trading and on-exchange instauration and redemption.

The accelerated bid amends NYSE Arca Rule 8.500-E to licence Trust Units issued by limited-liability companies and to admit index-based portfolios.

The support comes amid optimism driven by rumors that the archetypal spot Solana ETF could commencement trading successful the US as aboriginal arsenic this week and expectations of a wave of approval for different crypto ETFs this summer.

The Commission stated that the exchange’s surveillance capabilities and the fund’s asset-quality thresholds conscionable the requirements of Section 6(b)(5) to deter fraud and manipulation. 

Furthermore, the determination opens the doorway for different crypto handbasket funds to beryllium converted into ETFs.

Bitwise filed a Form 19b-4 successful November to uplist its $1.3 cardinal Bitwise 10 Crypto Index Fund (BITW) arsenic an exchange-traded product. Hashdex has besides requested that the SEC broaden its Nasdaq Crypto Index US ETF to include 7 further altcoins, a measurement it says volition precede a implicit conversion of its diversified trust. 

Franklin Templeton likewise submitted paperwork successful February to motorboat its ain crypto scale ETF, positioning the steadfast to displacement existing handbasket assets into an exchange-traded format erstwhile approved.

The station SEC approves Grayscale Index ETF conversion, clears Solana, XRP, Cardano for spot trading appeared archetypal connected CryptoSlate.