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Shares of Grayscale CoinDesk Crypto 5 ETF (NYSEARCA:GDLC) began trading on NYSE Arca on Friday, following several updates to its operational agreements, according to a statement in a press release and recent SEC filing. The fund, currently trading at $58.50 with a market capitalization of $928 million, has demonstrated remarkable momentum with a 207% return over the past year. InvestingPro data reveals the ETF is trading near its 52-week high of $58.95.
On Thursday, Grayscale Investments Sponsors, LLC, the manager of the fund, entered into new Participant Agreements with Jane Street Capital, LLC, Macquarie Capital (USA) Inc., and Virtu Americas LLC. Under these agreements, the firms will act as Authorized Participants, facilitating the creation and redemption of shares in blocks of 10,000, known as "Baskets." Currently, the fund only allows creation and redemption of shares through cash transactions, as regulatory approval for in-kind digital asset transactions has not been obtained.
The fund also entered into a Transfer Agency and Service Agreement with The Bank of New York Mellon, which will serve as transfer agent, effective as of the uplisting date. The agreement outlines BNY Mellon’s responsibilities, including issuing and redeeming shares, maintaining shareholder accounts, and providing reports to the fund.
In connection with these new agreements, the fund terminated prior arrangements with Grayscale Securities, LLC and Continental Stock Transfer & Trust Company. Grayscale Securities, LLC will no longer serve as distributor and marketer for the fund, and Continental will cease to be the primary transfer agent but will remain as co-transfer agent.
Additionally, the fund’s manager approved the commencement of a redemption program on Thursday, allowing shares to be redeemed in accordance with newly established procedures.
The filing also reiterated the fund’s policy to irrevocably abandon any digital assets received from blockchain forks or airdrops, meaning the value of such assets will not be reflected in the fund’s net asset value.
These updates are based on information disclosed in a press release statement and the fund’s Form 8-K filed with the Securities and Exchange Commission.
In other recent news, the U.S. Securities and Exchange Commission (SEC) has temporarily halted the approval for Grayscale Digital Large Cap Fund LLC to list on NYSE Arca. This decision came shortly after the SEC’s Division of Trading and Markets initially approved Grayscale’s application for the listing. The SEC issued a notice to review the order, leading to a stay on the approval during this review period. Meanwhile, Grayscale Digital Large Cap Fund LLC announced plans to change its name to Grayscale CoinDesk Crypto 5 ETF. The name change is expected to occur on or around July 2, 2025, pending regulatory approvals. This transition will also involve amending the fund’s governing agreement to reflect the new name. These developments were shared by Grayscale Investments Sponsors, LLC, the manager of the fund.
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