Grayscale starts the clock on SEC decision to convert GDLC fund to an ETF

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Key Takeaways

Grayscale moves closer to launching a multi-asset ETF on NYSE with GDLC fund.
The ETF will comply with NYSE Arca Rule 8.800-E for asset custody and trading.

Grayscale, through NYSE Arca’s recent filing, is moving to convert its Digital Large Cap Fund (GDLC) into an ETF, aiming to list and trade shares on the NYSE.

The fund currently holds a diversified mix of digital assets, with Bitcoin comprising 75.46%, Ether 17.90%, Solana 4.13%, XRP 1.86%, and Avalanche 0.65%.

Grayscale’s Digital Large Cap Fund, launched in 2018 and with $540 million in assets under management, was among the first funds to provide exposure to a basket of large-cap digital assets without directly holding the assets.

Converting GDLC to an ETF could unlock approximately $167 million in value for shareholders, according to Grayscale, providing new pathways for traditional investors to access digital assets under a regulated structure.

The proposed conversion aligns with Rule 8.800-E of NYSE Arca, ensuring continued compliance through rules on asset custody, trading requirements, and maintenance of at least 50,000 securities.

As detailed in the filing, Coinbase Custody will manage the secure storage of private key shards for Grayscale’s assets, with vaults strategically located across multiple regions for added protection.

Should technical issues arise, NYSE has outlined measures to suspend trading or initiate delisting to protect investors, according to the filing.