Grayscale petitions the U.S. SEC to convert its mixed crypto fund into an ETF

Grayscale, an American crypto investment firm, has filed a petition with the U.S. SEC to convert its mixed crypto asset fund into an exchange-traded fund (ETF). The fund contains several crypto assets, including BTC, ETH, XRP, AVAX, and SOL.

Grayscale is seeking approval from the U.S. financial regulator to reorganize an ETF from Grayscale Digital Large Cap Fund (GDLC). The investment firm filed with SEC on October 15th, seeking a regulatory green light to add its mixed digital asset fund as another ETF to its collection.

The GDLC holds 75% of its AUM in Bitcoin 

Grayscale’s official website reveals that the fund has five assets under management: Bitcoin, Ethereum, XRP, and Avalanche. The largest asset under the GDLC is Bitcoin, which accounts for 74.47%. Solana commands 4.26% of the total assets under management, while Ethereum accounts for 18.55%. Avalanche and XRP have a lower share than Solana , with 0.66% and 2.06%, respectively.

The GDLC manages $524.3 million worth of digital assets with a market price of $23.15 per share and a Net Asset Value Per Share (NAVPS) of $33.04. The fund executes OTC transactions under the ticker symbol GDLC. Crypto investors typically pay a 2.5% cut for management.

The Block reported that a Grayscale spokesperson confirmed via email that the recent filing represented its dedication to enhancing crypto accessibility to investors of all backgrounds. 

“This filing reflects Grayscale’s steadfast commitment to making the crypto asset class more accessible for all investors.”

-Grayscale spokesperson

Grayscale made similar applications early this year and converted its Ethereum and Bitcoin funds into ETFs. The firm’s spot Bitcoin ETF started trading in January after the SEC approved several applications. The ETF has an excess of $14 billion in net assets under management, according to Sosovalue . Grayscale’s Ethereum ETF has $4.21 billion under its custody.

Bitcoin ETFs hit a three-day streak of positive flows

Sosovalue’s data shows Bitcoin ETFs have recorded inflows in the last three days. The three-day streak began on October 11th when the ETFs received $253 million. The streak continued on the 14th and 15th of October with inflows worth $555.86 million and $371 million, respectively.

BlackRock’s IBIT led with additional Bitcoin purchases worth $288.84 million. Fidelity’s FBTC followed with $35.03 million in inflows. Grayscale’s GBTC and its Mini Trust BTC witnessed inflows yesterday. GBTC saw positive flows worth $7.99 million, while Grayscale’s Mini Trust BTC registered inflows worth $13.36 million.

The trend of Ethereum ETFs has been slow for the last couple of months. The ETH ETFs experienced an outrush valued at $12 million. Grayscale’s ETHE was the only fund with net negative ouflows on October 15th. According to Sosovalue, ETHE investors withdrew $15 million, while Fidelity’s FETH saw new investments worth $2.59 million. Grayscale’s Ethereum Mini Trust ETH had zero flows.