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Key Takeaways
- Grayscale is seeking regulatory greenlight to convert its Digital Large Cap Fund into a public ETF covering major crypto assets.
- The proposed ETF will include Bitcoin, Ethereum, XRP, Solana, and Cardano, with Bitcoin at the largest allocation.
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American digital assets giant Grayscale has submitted an application to the Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into a spot exchange-traded product (ETF).
The existing fund, also known as GDLC, currently holds a basket of major crypto assets, including Bitcoin (79.4%), Ethereum (10.69%), XRP (5.85%), Solana (2.92%), and Cardano (1.14%).
As of March 31, the fund had around $606 million in assets under management, according to an update on Grayscale’s official website. It has gained around 479% since its 2018 launch.
Cardano (ADA) was added to the fund’s assets in January following an index rebalancing, as noted in the S-3 filing. This digital asset replaced Avalanche (AVAX) to make the fund’s holdings match the new index composition.
The proposed ETF would maintain similar allocations while broadening retail investors’ access. This is also part of Grayscale’s mission to integrate crypto investments into mainstream financial markets.
The new filing follows a Form 19b-4 submitted by NYSE Arca last October. The management fee structure is not yet finalized in the S-3 registration statement.
With the rise of crypto ETFs, including spot Bitcoin and Ethereum approvals in 2024, Grayscale’s ETF conversion of DLCS aims to fulfill growing investor demand for regulated crypto exposure.
Grayscale is actively seeking approval for several ETFs tied to major crypto assets like XRP, ADA, Litecoin (LTC), Solana (SOL), Dogecoin (DOGE), Polkadot (DOT), and Avalanche (AVAX).
Bloomberg analysts assessed that Litecoin ETFs hold the highest approval likelihood among upcoming crypto ETFs, followed by Dogecoin, Solana, and XRP.
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