Key Highlights:
- The proposed Grayscale ETF is one of the first to hold multiple cryptocurrencies, adding altcoins like Avalanche and Solana to the mix.
- With the U.S. election on the horizon, the ETF approval could hinge on who takes the White House.
Yello Paradisers! What happens when the New York Stock Exchange jumps headfirst into the world of crypto ETFs? We’re about to find out.
NYSE Arca has filed with U.S. regulators to list the Grayscale Digital Large Cap Fund as a full-fledged ETF, a move that could bring crypto’s big players like Bitcoin, Ethereum, Solana, and even XRP to traditional investors in one tidy package.
Grayscale’s fund isn’t just any old crypto ETF, it’s packed with more than $565 million in assets, covering a mix of the usual suspects (Bitcoin, Ethereum) alongside some more daring additions like Avalanche and XRP. Unlike other proposed ETFs focusing solely on BTC or ETH, Grayscale’s basket is practically a crypto sampler platter for investors.
Crypto Index ETFs: The Next Big Thing?
This ETF’s timing couldn’t be more intriguing. With other asset managers like Hashdex and Franklin Templeton also eyeing crypto index ETFs, industry analysts believe the “index ETF wave” is just beginning. According to Katalin Tischhauser from crypto bank Sygnum, “The next logical step is index ETFs because indices are efficient for investors, just like how people buy the S&P 500 in an ETF. This will be the same in crypto.”
A ‘Call Option’ on the Presidential Election?
Here’s where it gets even more intriguing: Bloomberg ETF analyst Eric Balchunas suggests that the approval of crypto ETFs might turn into a game of political roulette. “If Trump wins, expect a more Libertarian SEC chair,” he quipped at a recent conference. Translation? A Trump victory could push crypto-friendly policies to the forefront, while a Kamala Harris administration might mean putting crypto ambitions on ice.
In the ETF race, Grayscale may be facing tough competition, with other issuers like Bitwise and Canary Capital filing for XRP and Litecoin ETFs in recent months. But with NYSE backing and the unique appeal of its multi-crypto portfolio, Grayscale’s ETF could be a trailblazer, if, of course, the SEC gives it the green light.
