The U.S. Securities and Exchange Commission (SEC) has approved a new exchange-traded fund (ETF) from asset manager Grayscale that will track the spot prices of multiple different cryptocurrencies.
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The new ETF from Grayscale will include Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA) in one fund. The majority of the fund’s weight, about 80%, will be in Bitcoin, which is the largest cryptocurrency by market capitalization.
The SEC said the new fund will be benchmarked against the CoinDesk 5 index (CD5). In a statement, CoinDesk said, “We are thrilled to see SEC approval… enabling investors and advisors to capture the largest and most liquid digital assets in a single product.”
Multi-Token Funds
This is the world’s first and largest multi-token crypto ETF, according to Grayscale. However, other asset managers are seeking to also offer exposure to multiple cryptocurrencies in a single fund. Trump Media & Technology Group (DJT) is seeking approval to launch a joint Bitcoin and Ethereum exchange-traded fund (ETF).
Grayscale Investments is a privately held U.S. asset manager that specializes in digital currencies and crypto. The company, based in Stamford, Connecticut, was founded in 2013 and launched its Bitcoin Trust (GBTC) that same year. Today, it has $50 billion of assets under management.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 29.92% in the last 12 weeks.
