Grayscale Seeks Approval for First Multi-Crypto ETF as Regulators Review Proposal

U.S. regulators are reviewing a request to launch the first exchange-traded fund (ETF) that includes a diverse range of cryptocurrencies, including altcoins, as announced by Grayscale on November 4.

NYSE Arca submitted this request to the Securities and Exchange Commission (SEC) on October 29 for the Grayscale Digital Large Cap Fund (GDLC), which features assets like Bitcoin, Ethereum, Solana, Avalanche, and XRP. Established in 2018, the fund currently manages about $534 million but is not yet publicly traded.

Grayscale filed to convert GDLC into an ETF on October 16, just before NYSE’s submission. The SEC now has 240 days to decide on the proposed rule change, which could lead to the first multi-crypto asset ETF.

While Grayscale faces competition from other asset managers, GDLC is unique in including several altcoins.

Analysts suggest that crypto index ETFs are the next significant focus for issuers, akin to traditional index funds. David LaValle, Grayscale’s global head of ETFs, emphasized the thoughtful approach taken in developing the proposed rules to comply with SEC standards.