The SEC has officially begun reviewing the application to convert the Grayscale Digital Large Cap fund into an ETF

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged receipt of the application to convert Grayscale Digital Large Cap (GDLC) fund into an exchange-traded fund (ETF). Against this backdrop, the public comment gathering process has begun, opening a new chapter in Grayscale’s long-term efforts to convert its cryptocurrency products into ETFs. Nate Geraci, Head of ETF Store, said.

The Grayscale Digital Large Cap fund includes cryptocurrency assets, with about 77% of its value in Bitcoin, 17% in Ethereum, and the remainder split between Solana, XRP and Avalanche. This composition allows to reflect the dynamics of the leading digital currencies on the market, which makes it attractive for investors interested in a diversified approach to investing in this asset class.

The SEC’s application approval process is traditionally highly regulated and rigorous. The Commission has begun publicly collecting comments from interested parties, which is considered an important step in the decision-making process. A positive SEC decision could open the door for mass adoption of cryptocurrency ETFs and attract the attention of a wider range of investors to the market.

The expert notes that the approval has the potential to have a significant impact on the industry by increasing liquidity and making digital assets more accessible to institutional investors. However, despite the optimism, there are some potential risks to consider. These include the possibility of increased regulation and the need for additional measures to ensure investor safety. Grayscale’s success in this process could be a signal to other crypto funds that are also seeking ETF status and access to major stock exchanges.