coinspress.com
Grayscale has made a notable submission to the SEC to convert its Grayscale Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF).
James Seyffart, an ETF analyst at Bloomberg, highlighted that XRP is one of the primary tokens within the fund.
This conversion aims to restructure Grayscale’s existing fund into an ETF, which, if granted approval, would allow trading on the New York Stock Exchange (NYSE). Alongside XRP, the GDLC features significant holdings in Bitcoin, Ethereum, Solana, and Avalanche, enhancing access to these cryptocurrencies for potential investors.
With $534 million in assets under management, the GDLC is currently an over-the-counter closed-end fund, enabling exposure to various large-cap cryptocurrencies.
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Closed-end funds typically do not trade at their Net Asset Value (NAV), but transitioning to an ETF could align the fund’s trading closer to its NAV, offering investors improved liquidity, transparency, and access. Moreover, ETFs are subject to stricter regulations than closed-end funds, making them more appealing to institutional investors.
The inclusion of XRP in this filing increases pressure on the SEC, especially given the ongoing legal issues between the SEC and Ripple, the entity associated with XRP.
The regulatory body will need to address the status of XRP, as it also reviews pending applications for crypto asset ETFs. Notably, Bitwise recently became the first asset manager to apply for a spot XRP ETF, followed by Nashville-based Canary Capital, which is backed by Valkyrie, also entering the ETF competition.