Asset manager Grayscale received approval from the U.S. Securities and Exchange Commission (SEC) on Tuesday to convert its digital large funds into exchange-traded funds (ETFs).
The fund consists of the five largest cryptocurrencies listed in the five Coindesk indexes.
About 80.2% of the weighted fund is Bitcoin (BTC), followed by 11.3% of Ether (ETH), while Solana (Sol) accounts for about 2.7% of the fund, XRP (XRP) orders exceed 4.8%, and Cardano’s ADA (ADA) weighs 0.81%.
Investors have long been capitalized Grayscale’s crypto trust’s arbitrage opportunitiesleverages premiums or discounts of net asset value (NAV), minus the total assets of funds minus liabilities to lock in profits.
These expanded windows are mainly due to the lockdown period of Grayscale’s crypto trust and the lack of physical redemption. However, arbitrage opportunities have been declining since Grayscale began converting its private digital asset trusts into ETFs. Its Tuesday letter read:
“The fund’s investment objective is to reflect the value of the digital assets held by the fund, the value of the ‘fund component’, depending on the respective index prices and weights in its funds, reducing the fund’s expenditures and other liabilities.”
Grayscale is a pioneer in crypto investment vehicles, providing investors with exposure to digital assets Hold the cryptocurrency directly. Its cryptocurrency conversion trusts exchange-traded funds, which shows the end of an era and the maturity of the industry.
Related: Analysts increase the chances of SOL, XRP and LTC ETF approval to 95%
Grayscale brings the battle of conversion to court and wins
In June 2022, Grayscale requested court Convert its Bitcoin trust to ETF After the SEC rejects its application.
Legal struggle Lasted for about a year, in August 2023, a U.S. judge ruled that the SEC was denying the conversion request and Petition to Gresca.
Grayscale’s Bitcoin Trust is now trading as an ETF, Command rate is 1.5%making it the most expensive Bitcoin ETF on the market and the highest-grossing BTC investment vehicle.
Magazine: SEC’s turnaround on cryptocurrencies leaves key issues
