SEC Acknowledges Grayscale’s ETF Application, Paving the Way for Potential XRP Spot ETF

You May Be Interested In:Scientists discover new way to make fuel from water and sunlight, but more work is needed


XRP is getting closer to having a basket spot ETF in the U.S. This development came as the U.S. Securities and Exchange Commission (SEC) acknowledged Grayscale’s request to convert its Digital Large Cap Fund (GDLC) into an ETF.

The SEC recently confirmed that it received a proposed rule change from NYSE Arca, requesting approval to list and trade Grayscale’s multi-coin fund shares.

XRP Moves Closer to ETF Approval as SEC Reviews Grayscale Fund Proposal

The NYSC Arca has filed an application with the SEC, revealing its intention to list Grayscale’s multi-coin fund, GDLC, which also includes XRP. The SEC’s recent notice states that the NYSE sent in the filing under section 19(b)(1) of the 1934 Securities Exchange Act and Rule 19b-4.

These rules are important for making changes. They allow the NYSE to request changes in how it lists and trades certain funds. Also, by using these rules, the NYSE can propose new trading options.

The notice mainly informs people about this proposal and asks for public comments on the rule change. This way, the SEC can hear different opinions before making a final decision.

Nate Geraci, the President of the ETF Store, shared the SEC notice yesterday. He suggested that this notice means the timeline for approval has started.

If the SEC approves the application, Grayscale’s GDLC would become the first spot crypto ETF in the U.S. to include multiple types of crypto in one fund. This would be a new and important option for crypto investors in the country.

Grayscale launched the Digital Large Cap Fund on February 1, 2018. This fund includes a mix of popular digital assets. It Holds Bitcoin (BTC) and Ethereum (ETH), two of the largest cryptocurrencies. The fund also includes Solana (SOL), XRP (XRP), and Avalanche (AVAX).

By having a basket of these assets, the fund gives investors a chance to own a variety of top digital currencies in one place.

At press time, the Digital Large Cap Fund has a total asset under management (AUM) of $558.84 million. Bitcoin makes up 76.26% of the fund’s value, and Ethereum accounts for 17.20%. Meanwhile, Solana (SOL) represents 4.38% of the fund, XRP is 1.59%, and Avalanche (AVAX) is 0.57%.

Although XRP makes up a small part of the fund’s value, its role is still vital. If the fund gets approval for an ETF, it could bring in significant capital from institutional investors.

This influx of funds could help grow the XRP ecosystem. Additionally, having a successful ETF could make it easier for other XRP ETFs to get approved. More approvals could lead to greater interest and investment in XRP.

Ripple CEO Confident in Future Approval of XRP ETFs Despite SEC Delay

Canary Capitals and Bitwise want to launch spot ETFs only linked to XRP. They submitted their applications to the SEC earlier this month

However, the SEC has not yet acknowledged any of these filings. This is surprising because the applications were sent in before Grayscale’s request to convert its GDLC.

The delay in responses is expected and is likely due to the ongoing SEC v. Ripple Lawsuit. Both sides are trying to challenge a ruling about Ripple’s XRP transactions in this case. They have already submitted their initial arguments for the case.

Despite the rumors about XRP ETFs, Ripple CEO Brad Garlinghouse is optimistic and believes the SEC will approve these funds in the future. His confidence comes from his faith in the value of XRP and its technology. 

Garlinghouse thinks the SEC will recognize the benefits of these ETFs for investors. This approval could help XRP grow and succeed even more in the market.



share Paylaş facebook pinterest whatsapp x print

Similar Content

Boeing-made communications satellite breaks up in space
Boeing-made communications satellite breaks up in space
Tesla Cybertruck production suspended amid concerns over slowing sales
Tesla Cybertruck production suspended amid concerns over slowing sales
Google reacts angrily to report it will have to sell Chrome
Google reacts angrily to report it will have to sell Chrome
Appeals Court Issues First Order in Ripple Vs SEC Lawsuit
Appeals Court Issues First Order in Ripple Vs SEC Lawsuit
Samsung Galaxy Z Fold Special Edition is thinner, lighter and gets larger screens
Samsung Galaxy Z Fold Special Edition is thinner, lighter and gets larger screens
Bitcoin tops record $80,000 as Trump nears sweep of US Congress
Bitcoin tops record $80,000 as Trump nears sweep of US Congress
Flash News Hub | © 2024 | News