Essentially, Grayscale aims to lower custody risks while offering exposure through traditional markets by using an ETF structure.
Before the ETF can launch, Grayscale must file a corresponding 19b-4 submission, a procedural step that requires SEC approval.
Grayscale stated that its proposed ETF could allow some of the tokens held in the trust to be staked.
In that scenario, the asset management firm said it would rely on third-party providers to keep tokens in custodian wallets.
The firm emphasized that the fund will use a cash-based creation and redemption model.
The company also indicated that NYSE Arca could eventually seek regulatory clearance to update its listing rules to accommodate in-kind transactions.
Its current applications already cover multiple assets, including Solana and XRP, reflecting growing institutional interest in altcoins.
Market analysts argue that these applications reflect rising institutional interest in altcoins.
He said such rules could be finalized by October, potentially clearing the way for multiple altcoin products to enter the market.
