Grayscale submitted an S-3 Form to the US Securities and Exchange Commission (SEC) on April 1, aiming to register its multi-asset Grayscale Digital Large Cap Fund (GDLC) as an exchange-traded fund (ETF).
The S-3 form, under the Securities Act of 1933, is utilized by issuers who fulfill certain reporting criteria to register securities for public sale, whether immediately or on a delayed timeline.
According to the document, NYSE Arca filed a separate 19b-4 application on October 15, 2024, to list GDLC shares, which is currently undergoing SEC review.
Grayscale has indicated that it will not pursue the effectiveness of the registration statement or any related offers until SEC approval is received for the NYSE Arca listing.
Importantly, the countdown for an SEC decision started with the 19b-4 filing, with the second deadline on May 3 and the final deadline on July 2.
Additionally, approval for transforming GDLC into an ETF could also have positive implications for Bitwise, which has an active conversion filing for its Bitwise 10 Crypto Index Fund awaiting regulatory action. Such approvals often occur simultaneously.
Aligned with the digital asset collection
The GDLC presently includes five cryptocurrencies that President Donald Trump referenced when proposing a digital asset collection: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
The fund’s holdings are regularly rebalanced, although the manager has the discretion to exclude certain assets as needed.
Furthermore, David Sacks, the White House "Crypto Czar," indicated that there are no hidden agendas behind the selection of these cryptocurrencies.
In an interview with Bloomberg Technology, Sacks noted that the market might be interpreting Trump’s comments as more significant than intended, explaining that the cryptocurrencies identified by the President were chosen due to their market capitalization.
The Digital Asset Collection, encompassing various altcoins held by US authorities, was officially established via an executive order signed by Trump on March 7.