Grayscale’s Digital Large Cap Fund (GDLC) moves 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, allowing broader investment options beyond Bitcoin and Ether.
Grayscale Digital Large Cap Fund (Ticker: $GDLC,) Application to Uplist as Exchange-Traded Product Now Published in Federal Register.
GDLC is publicly traded and holds #Bitcoin, #Ether, $SOL, $XRP, $AVAX
Read the Press Release: https://t.co/bOsp3k2MAt
— Grayscale (@Grayscale) November 4, 2024
The company has faced regulatory hurdles in securing approval for its GDLC as an ETP. Despite the challenges, the investment company argues its SEC-reporting status, high correlation between Bitcoin’s spot and future prices, and transparency mitigate concerns. Leveraging these points, Grayscale seeks to offer traditional investors regulated access to diversified digital assets.
Grayscale’s Fund Details
According to the press release, Peter Mintzberg, the investment company’s CEO, stated that the firm aims to lead in digital asset investing, catering to increasing investor demand for diversified portfolios. Currently GDLC manages over $530 million in assets, with a portfolio comprising 76.53% Bitcoin and 16.92% Ether, among other digital assets.
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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, it would enhance GDLC’s strategy of tracking the CoinDesk Large Cap Select Index.
Grayscale’s Strategy
The investment company’s commitment towards building regulated investment vehicles indicates it goal of providing efficient options for investors navigating the evolving crypto space. The fund has been publicly traded since November 2019 and became an SEC reporting entity in July 2022.
As interest in cryptocurrency grows, Grayscale is positioned to meet the needs of both retail and institutional investors looking for secure and diversified exposure to digital assets.
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Also Read: Bernstein Projects Bitcoin to Hit $200,000 by End of 2025
