NYSE Grayscale wants to list crypto index ETF
NYSE Arca, a securities exchange, has requested permission from US regulators to list a greyscale exchange-traded fund (ETF) holding various spot cryptocurrencies, in an October 29 filing.
In the year The Greyscale Digital Large Cap Fund, created in 2018 but not yet traded, holds a crypto index portfolio that includes Bitcoin (BTC), Ether (ETH) and Solana (SOL), among others.
It currently holds approximately $565 million in assets under management (AUM), according to Grayscale's website.
Grayscale filed to convert the fund into an ETF on Oct. 16, just days before the NYSE filing.
Holdings of Grayscale Digital Large Cap Fund. Source: Grayscale
Other proposed index funds, including those from asset managers Hashdex and Franklin Templeton, will create competition for Greyscale.
The Greyscale fund is unique among index ETFs by tracking a basket of alternative cryptocurrencies, including Avalanche (AVAX) and XRP (XRP).
The fund tracks the CoinDesk Large Cap Select Index and holds a total of five different crypto assets.
The Hashdex and Franklin Templeton funds initially aim to hold only Bitcoin and Ether.
Industry analysts say crypto index ETFs are the next big focus for issuers after holding BTC and ETH listed in January and July.
“The next logical step is an index ETF because indexes are efficient for investors — just like people buy the S&P 500 in an ETF. This will be the same in crypto,” Kathleen Tischhauser, head of investment research at the crypto bank, told Cointelegraph in August.
Some crypto indices only track Bitcoin and Ether. Source: Nasdaq
Asset managers and exchanges are filing to register crypto products that analysts call a “call option” on the outcome of the US presidential election.
“if so [former US president Donald] Trump will win […] It definitely makes it more liberating [Securities and Exchange Commission] Bloomberg ETF analyst Eric Balchunas spoke at the Plan B Forum conference in October.
“So if you see a Trump victory, look at this place and if you see it [Kamala] Harris' win, forget about it for two years,” Balchunas said.
In July, securities exchange Cboe requested permission to list VanEck and 21Shares' proposed SOL ETFs.
In October, ETF issuers Canary Capital and Bitwise both offered ETFs for the proposed XRP. Canary also offers to register Litecoin (LTC) ETF on October 15th.
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