SEC publishes NYSE Arca’s proposal to uplist Grayscale fund

The U.S. Securities and Exchange Commission has published an application for a Grayscale digital asset fund to list as an exchange-traded fund on the Federal Register.

According to Grayscale’s announcement made on November 4, this action by the SEC indicates that the review process for the NYSE Arca application, which aims to convert the multi-token Grayscale Digital Large Cap Fund into an ETF, is currently ongoing.

NYSE Arca recently filed Form 19b-4 to list and exchange shares of the Grayscale fund. The SEC’s decision to add the proposal to the Federal Register officially begins the review process for the proposed rule change.

Under U.S. securities laws, the review process may take up to 240 days. Form 19b-4 includes NYSE Arca’s proposal to expand the definition of exchange-traded products that hold commodities and digital assets beyond Bitcoin (BTC) and Ethereum (ETH).

“Grayscale and NYSE Arca have taken a thoughtful approach to developing a proposed ruleset to permit the listing and trading of shares of multiple cryptoasset ETPs within the SEC’s existing standard, and we look forward to engaging constructively with regulators. “We will take digital assets even further beyond US legislation and make them available to our customers.”

David LaValle is Grayscale’s global head of ETFs.

Grayscale first offered GDLC as a private placement starting in February 2018 before opening to public trading in November 2019. The product became a reporting entity with the SEC in July 2022.

There are currently five coins in the fund. Apart from BTC and ETH, the others are Solana (SOL), XRP (XRP) and Avalanche (AVAX). The fund trades on OTC markets and has more than $530 million in total assets under management as of November 1, 2024.

If approved, the Grayscale product would be the first multi-token exchange-traded product to be listed and traded on a national securities exchange.