NYSE Arca Seeks Approval To List Grayscale Crypto ETF

According to Cointelegraph, NYSE Arca has requested permission from United States regulators to list a Grayscale exchange-traded fund (ETF) that holds a diverse basket of spot cryptocurrencies. This request was made in an Oct. 29 filing. The Grayscale Digital Large Cap Fund, established in 2018 but not yet exchange-traded, includes a crypto index portfolio featuring Bitcoin (BTC), Ether (ETH), and Solana (SOL), among others. The fund currently manages approximately $565 million in assets, as per Grayscale’s website. Grayscale had filed to convert the fund into an ETF on Oct. 16, just days before NYSE Arca's filing. The Grayscale Digital Large Cap Fund is distinct among proposed index ETFs as it tracks a basket containing alternative cryptocurrencies, including Avalanche (AVAX) and XRP (XRP). The fund follows the CoinDesk Large Cap Select Index and holds a total of five different crypto assets. In contrast, other proposed index funds from asset managers like Hashdex and Franklin Templeton plan to initially hold only Bitcoin and Ether. Industry analysts suggest that crypto index ETFs are becoming a significant focus for issuers, following the listing of ETFs holding BTC and ETH in January and July, respectively. Katalin Tischhauser, head of investment research at crypto bank Sygnum, noted that index ETFs are efficient for investors, similar to how people invest in the S&P 500 through ETFs. Asset managers and exchanges are actively filing to register various proposed crypto products, which analysts are referring to as a “call option” on the outcome of the US presidential election. Bloomberg ETF analyst Eric Balchunas mentioned during the Plan B Forum conference in October that a victory for former US president Donald Trump could lead to a more libertarian Securities and Exchange Commission chair, potentially benefiting the crypto ETF market. Conversely, a victory for Kamala Harris might delay such developments. In July, securities exchange Cboe sought regulatory approval to list VanEck’s and 21Shares’ planned SOL ETFs. In October, ETF issuers Canary Capital and Bitwise filed for proposed XRP ETFs, with Canary also filing to register a spot Litecoin (LTC) ETF on Oct. 15.