Approval granted for pioneering ETF offering exposure to XRP; Barry Silbert voices reaction
Grayscale Digital Large Cap Fund ETF Endorsed as First Multiple Crypto Exchange-Traded Fund
In a significant move for the cryptocurrency industry, the Grayscale Digital Large Cap Fund ETF has been endorsed as the first multi-crypto exchange-traded fund (ETF) in the United States. The ETF, now trading as Grayscale CoinDesk Crypto 5 ETF, covers major cryptocurrencies such as Bitcoin, Ethereum, Ripple, Solana, and Cardano, among others.
The approval of this ETF is a groundbreaking step in the industry, according to Barry Silbert, founder of Digital Currency Group. Grayscale, a leader in crypto asset management, is pioneering a product that connects traditional financial markets with digital assets.
The Grayscale Digital Large Cap Fund ETF was initially launched as a private placement for accredited investors in early 2018 and later made available on the over-the-counter (OTC) market. As of September 17, the ETF has total assets of $915.6 million.
Ripple accounts for 5.2% of the total fund, making it the third largest constituent in the fund. Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, hold the top two positions in the fund.
Grayscale has been recognized as a pioneer in the crypto ETF trend, especially after winning a legal case against the SEC. The US Securities and Exchange Commission (SEC) approved the conversion of GDLC into an ETF in early July, but the decision was later halted for "review".
The approval of a Bitcoin ETF is expected as early as 2024, followed by an Ethereum ETF. Grayscale's GBTC currently has over $20.5 billion in net assets, indicating a high level of investor confidence and potential growth in the crypto ETF industry.
The Grayscale Digital Large Cap Fund ETF's approval marks a significant milestone in the mainstream adoption of cryptocurrencies. As more traditional financial institutions embrace digital assets, we can expect to see more innovative products like this one in the future.
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