In the latest development, the US SEC has published Grayscale’s 19b-4 filing for its Digital Large Cap Fund in the Federal Register. This has now officially kickstarted the SEC’s review process for the asset manager’s application to convert this fund into an ETF.

SEC Acknowledges 19b-4 Application

Grayscale revealed in a press release that the US SEC has published the NYSE Arca’s 19b-4 filing to list and trade its Digital Large Cap Fund as an Exchange-Traded Product (ETP) in the Federal Register. The asset manager filed to convert the Digital Large Cap Fund into an ETF around two weeks prior to the SEC acknowledging the 19b-4 application.

The review process can take up to 240 days before the regulator decides to approve or deny the application. This would be the first time a national securities exchange lists and trades shares of multi-crypto asset ETPs if the US SEC accepts the NYSE Arca’s proposed rule change. 

As of November 1, the GDLC currently holds over $530 million in assets under management for the fund. The fund holds Bitcoin, Ethereum, Solana, XRP, and Avalance, which are weighted according to their respective market caps.

Why Is It Significant?

Grayscale remarked that the NYSE Arca’s proposed rule change seeks to revise how the exchange defines ETPs that hold commodities and digital assets, going beyond Bitcoin and Ethereum.

The filing is significant considering that it is the first filing that the US SEC will be considering that doesn’t just border on the two largest cryptos by market cap.

With the SEC’s controversial stance on cryptocurrencies’ non-security status except for Bitcoin and Ethereum, it will be worthwhile to watch out for the SEC’s comments on the application. 

SOL, XRP ETF In The Line

The US SEC has yet to react to Van Eck’s and 21Shares’ Spot Solana ETF applications and to the XRP ETF filings from Bitwise and Canary Capital. Recently, 21Shares also recently joined the XRP ETF race last week as they filed the form S-1 for their XRP ETF with the SEC.