Applications for crypto currency -oriented stock market investment funds (ETF) in the US continue unabated. Recent developments draw attention with new ETF initiatives of large asset management companies such as Grayscale and 21shares. SEC’s decisions that affect XRP, BTC, ETH and many crypto and expectations play a critical role for the future of the crypto market.
Postponing Grayscale’s application that affects XRP, Sol, Island, ETH, BTC
The US Securities and Stock Exchange Commission (SEC) postponed the decision of the Grayscale Digital Large Cap Fund to the transformation of the stock market investment fund (ETF). According to Panews, Fon contains large crypto assets such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (left) and Cardano (island). It remains unclear when SEC will make a decision on this issue.
ETF Application for Doge
On the other hand, Grayscale has applied for a new ETF for Dogecoin (Dogge). Nyse Arca presented Grayscale’s 19b-4 forms to list and start trading. This application came after Grayscale recently created Dogecoin Trust and launched it. Last year, a Dogecoin ETF appeared to be distant, while Bitwise participated in the Dogan ETF race this week by making a similar application.
The newly proposed Dogecoin ETF will enable investors to be subjected to assets without directly domestic owner. According to the application, Coinbase Custody Trust Company will assume the task of storing the fund, and Bny Mellon will manage administrative and transfer processes. It is stated that Dogecoin can be used as a payment tool such as Bitcoin and Litecoin and can be converted into nominal currencies. The SEC has to decide within 45 days after publishing the 19b-4 application in the Federal Record. If necessary, this period can be extended up to 90 days.
Application came from 21shares for DOT
Another example of the increase in crypto ETF applications was the ETF application for the asset management company 21shares for Polkadot (DOT). 21Shares requested to start the Spot Polkadot ETF by applying to the US SEC. The company plans to list the 21shares Polkadot Trust on the CBOE BZX exchange. Coinbase will undertake the fund storage service. 21shares launched the world’s first Polkadot ETP in Switzerland in 2021. The application, Polkadot’s price performance can not be given any guarantee. In addition, it was emphasized that there are risks such as an increase in DOT supply or the classification of assets as securities within the scope of federal laws.
Bloomberg analyst James Seyffart said the market will determine the value of such ETFs and the fund may be closed if there is no demand. Following the departure of Gary Gensler from the SEC Presidency, Altcoin ETF applications increased. Grayscale, Dogge, XRP, Litecoin and Solana made ETF applications, while companies such as Osprey Funds and Rex Shares also made ETF applications for Dogecoin and other Memecoins. In addition, SEC recently gave Bitwise Bitcoin and Ethereum ETF.
