NYSE Arca seeks regulatory nod for Grayscale crypto ETF

• NYSE Arca is seeking regulatory approval to list an ETF of the Grayscale Digital Large Cap Fund.
• Grayscale recently filed to have go ahead to convert the fund to a spot ETF.

Securities exchange NYSE Arca is seeking regulatory approval to list a new crypto exchange-traded fund by Grayscale.

The ETF aimed at would track the Grayscale Digital Large Cap Fund, which the GBTC issuer launched in 2018 and is not an exchange-traded fund at the moment.

According to an Oct. 29 filing, the NYSE Arca wants to list the $565 million fund, which Grayscale recently sought approval to convert into a spot ETF. Grayscale’s application came on Oct. 16.

The fund currently holds five spot crypto assets, including Bitcoin, Ethereum and Solana, with BTC weighted at 76.5%, ETH at 16.88% and SOL at 4.46% as of Oct. 29.

Other digital assets in the Digital Large Cap Fund are Avalanche and XRP, weighted at 0.58% and 1.58% respectively.

Recently, the US Securities and Exchange Commission (SEC) greenlighted the trading of options on NYSE’s spot Bitcoin exchange-traded products. These included Grayscale’s flagship asset GBTC and the Mini Bitcoin Trust BTC. This comes as the industry continues to witness massive demand and investment in spot Bitcoin ETFs following SEC’s approval in January 2024.

Spot ETFs inflows and holdings

Inflows into spot ETFs, which includes Ether ETFs approved in May, has skyrocketed. According to SoSoValue data, US spot BTC ETFs have seen cumulative net inflows of $23.28 billion.

Meanwhile, total net assets have surpassed $72.55 billion, with this accounting for over 5% of the BTC market cap. BlackRock’s IBIT holds $30 billion in assets.

In a post on X on Oct. 30, Bloomberg senior ETF analyst Eric Balchunas shared that spot Bitcoin ETFs were on track to surpass 1 million BTC holdings.

Satoshi Nakamoto, the creator of Bitcoin who remains unknown, holds the most BTC today. Satoshi mined the coins in the early years of the flagship digital asset’s launch. Spot ETFs could surpass the 1.1 million figure within the next few days.