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NYSE Arca has sought regulatory approval to list a Grayscale exchange-traded fund (ETF) comprising various cryptocurrencies. The Grayscale Digital Large Cap Fund, worth roughly $565m is currently unlisted, but includes Bitcoin, Ether, Solana, and other alternative cryptocurrencies. The company applied to convert the fund into an ETF in mid-October. Several firms, including Hashdex and Franklin Templeton, are proposing similar products. Experts predict such crypto index ETFs could be the industry’s next development. Managerial and exchange rushes for crypto product approvals are partly driven by speculation about potential outcomes of the forthcoming US presidential election.

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NYSE Arca, a trading platform, has asked US regulators if they can list an exchange-traded fund (ETF) from Grayscale that includes a mix of different cryptocurrencies. According to a report on October 29, the Grayscale Digital Large Cap Fund is not yet available for trading. It currently contains a selection of cryptos like Bitcoin, Ether, and Solana, among others.

The fund is worth around $565 million right now, according to the Grayscale website. Grayscale made a move to convert this fund into an ETF on October 16, a few days before NYSE Arca made its request.

Other investment companies like Hashdex and Franklin Templeton are also proposing similar index funds, creating competition for Grayscale. But Grayscale’s fund is exceptional because it includes alternative cryptocurrencies such as Avalanche and XRP.

Industry experts predict that the next big thing in the industry will be these crypto index ETFs, following the listing of ETFs that contain Bitcoin and Ether in January and July. They argue that just like how people invest in S&P 500 in an ETF, they could do the same with crypto index ETFs.

At the moment, there is a rush among asset managers and exchanges to get approval for various proposed crypto products as they speculate on the outcome of the upcoming US presidential election. They think that if Trump wins, there will be a crypto-friendly person leading the Securities and Exchange Commission, supporting the crypto industry. But this might be different if Harris becomes president.

For instance, securities exchange Cboe asked regulators in July for permission to list two planned SOL ETFs by VanEck and 21Shares. More recently, in October, Canary Capital and Bitwise each submitted proposals for XRP ETFs. Canary also applied for registration of a Litecoin ETF on October 15.

Source: Cointelegraph