SEC Approves Grayscale's Spot Bitcoin ETF

SEC Greenlights Grayscale's Spot Crypto ETF

In a significant development for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) has approved Grayscale Investments' application to convert its Digital Large Cap Fund (GDLC) into a spot Bitcoin ETF. This approval, effective July 1st, marks a pivotal moment for regulated crypto investment in the United States.

Key Takeaways

• The SEC approved Grayscale's GDLC, a multi-asset fund, for conversion to a spot ETF.
• The ETF will track the performance of Bitcoin (BTC), Ethereum (ETH), XRP, Solana, and Cardano (ADA), offering diversified crypto exposure.
• Bitcoin accounts for approximately 80% of the ETF's holdings, providing substantial BTC exposure for investors.
• The fund currently holds nearly $775 million in assets under management.

This decision follows Grayscale's amended S-3 filing with the SEC, signaling active collaboration and a positive regulatory outlook. The approval was anticipated by market analysts, with some predicting a high likelihood of success. The approval of this multi-asset fund could pave the way for future single-asset spot ETFs focusing on cryptocurrencies like XRP, Solana, and Litecoin.

The launch of GDLC as a spot ETF on NYSE Arca provides US investors with a regulated and easily accessible entry point to the large-cap cryptocurrency market. This move signifies increased regulatory clarity and potentially higher institutional participation in the crypto space. The approval is considered a major step toward greater mainstream adoption of cryptocurrencies.

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