Crypto asset manager Grayscale seemed to write history this week by bringing a basket with Bitcoin (BTC) and Altcoins to the stock market. The company received green light to convert its so-called Digital Large-Cap Fund to an ETF. But the Securities and Exchange Commission (SEC) quickly put a stop to that. Nevertheless, Grayscale remains “determined” to continue the fund.
Beursdroom Grayscale is canceled
In a response to various American crypto news platforms, Grayscale said that he “stayed dedicated to the realization of the listing” and “to work closely with all parties involved to meet the requirements”.
The break came very unexpectedly. Only a day before the SEC had approved the fund through its ‘Division of Trading and Markets’ department.
The ETF could mean a big breakthrough. It is about the conversion of his GDLC fund. This is a over-the-counter (OTC) fund that mainly consists of Bitcoin (BTC), almost 80 percent, and Ethereum (ETH), around 11 percent. But the unique thing is that it also contains smaller allocations in Solana (SOL), Cardano (ADA) and XRP.
In this case, over-the-counter means that the fund cannot be tradable on a stock exchange, but only through alternative trading platforms and only for certain professional investors.
Grayscale wants to convert the fund into a spot ETF, as it already did last year with similar Bitcoin and Ethereum funds, which is listed on the stock market (the New York Stock Exchange, that is).
For this, however, it must meet strict regulations and receive approval from the SEC. Access to the stock market would free up the road for a broader institutional inflow into crypto assets. It is precisely the reason why this conversion gets so much attention. But we now have to wait longer.
When the conversion will continue remains unclear. It may take a while. According to analysts, the break is not on the fund itself, but on the larger picture. “The SEC first wants to draw up formal guidelines for all crypto ETFs,” said Nate Geraci of Novadius Wealth Management. He sees it as a positive signal: “As soon as there is a clear framework, the locks open.”
Solana ETF is a success
Grayscale’s news follows the success of the Solana Spot ETF that was jointly created by the asset manager Rex Shares and Osprey Funds. It was noted this week and had a good start.
With an influx of 12 million dollars and a trading volume of 33 million dollars, the first day according to ETF expert Eric Balchunas was “healthy and promising.” The analyst calls it even more impressive than previous launches of Solana and XRP Future Funds.
Source: https://newsbit.nl/grayscale-strijdt-voor-multi-crypto-etf-terwijl-toezichthouder-dwarsligt/
