- Grayscale has filed to convert its $524 million Digital Large Cap Fund into an exchange-traded fund.
- The fund includes BTC, ETH, Solana, XRP, and Avalanche among its holdings
- This is Grayscale's third ETF conversion after Bitcoin and Ethereum funds
Grayscale Investments has taken an important step towards expanding its suite of cryptocurrency-based financial products by filing an application with the US Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF).
GDLC, which is currently traded over-the-counter, provides diversified exposure to several leading digital assets, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Ripple (XRP), and Avalanche (AVAX).
Grayscale's move represents an ongoing effort by Grayscale to make cryptocurrency investments more accessible to traditional investors.
Grayscale's Digital Large Cap Fund (GDLC)
According to Company reportThe fund has $524 million in assets under management, with a significant concentration in Bitcoin and Ethereum, making up approximately 75% and 19% of the holdings, respectively.
The remaining portion is allocated to Solana, XRP, and Avalanche, providing investors with balanced exposure to established and emerging cryptocurrencies.
The third time Grayscale has converted a fund into an ETF
If approved, the ETF would mark Grayscale's third fund conversion into an ETF, following previous conversions of Bitcoin and Ethereum funds earlier this year.
A Grayscale spokesperson confirmed that the filing reflects the company's commitment to enhancing access to the crypto asset class for mainstream investors.
The company aims to leverage the regulatory structure of ETFs to offer a more efficient and widely accepted investment vehicle, which could attract additional interest from institutional and retail investors.
In parallel with Grayscale's move, the market has seen a rise in ETF deposits for various crypto assets.
Recently, Bitwise filed an application with the Securities and Exchange Commission (SEC) for permission to list somewhere XRP ETF and Canary Capital has applied to list XRP and Litecoin ETFs. However, these filings have yet to receive approval, underscoring the regulatory uncertainty surrounding cryptocurrency-based ETFs in the US.
Grayscale's initiative to transform the GDLC into an exchange-traded fund (ETF) aligns with its broader strategy of offering products that bridge the gap between traditional finance and the evolving digital asset landscape.
Alongside the proposed conversion, the company also provided funds providing exposure to XRP and its governance token AAVE, reflecting its proactive approach in navigating the competitive and regulatory dynamics of the cryptocurrency market.