Grayscale seeks ETF status for multi-asset fund with S-3 form filing

Grayscale filed an S-3 Form with the US Securities and Exchange Commission (SEC) on April 1 to register its multi-asset Grayscale Digital Large Cap Fund (GDLC) as an exchange-traded fund (ETF).

Under the Securities Act of 1933, the S-3 form is used by issuers that meet specific reporting requirements to register securities for public sale, either immediately or on a delayed basis.

According to the filing, NYSE Arca submitted a separate 19b-4 application on Oct. 15, 2024, to list GDLC shares. That application remains under SEC review. 

Grayscale said that it would not seek the effectiveness of the registration statement or proceed with any offer unless and until SEC approval is obtained for the NYSE Arca listing.

Notably, the clock for an SEC decision has been running since the 19b-4 filing. The second deadline is May 3, and the final is July 2.

Furthermore, a potential approval for converting GDLC into an ETF could also benefit Bitwise, which has a conversion filing for its Bitwise 10 Crypto Index Fund awaiting regulatory action, and these often happen in batches.

Aligned with the digital asset stockpile

The GDLC is currently composed of the five cryptos mentioned by President Donald Trump when he floated the idea of a digital asset stockpile: Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). 

However, the fund’s composition is periodically rebalanced, though the manager retains discretion to exclude assets when appropriate. 

Moreover, according to White House “Crypto Czar” David Sacks, the mention of these cryptos has no ulterior motives.

In an interview with Bloomberg Technology, Sacks said the market was reading “a little bit too much” into Trump’s remarks and that the cryptos mentioned by the President were chosen because they are among the largest by market cap.

The Digital Asset Stockpile, consisting of all the altcoins retained by US authorities, was formalized through an executive order signed by Trump on March 7.

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