- Grayscale has applied to convert its $524 million digital large-cap fund into an ETF.
- The fund holds BTC, ETH, Solana, XRP, and Avalanche.
- This is Grayscale’s third ETF conversion, following the Bitcoin and Ethereum funds.
Grayscale Investments has taken a significant step toward expanding its suite of cryptocurrency-based financial products by filing with the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into an Exchange Traded Fund (ETF). .
Currently trading over-the-counter, GDLC offers diversified exposure to several major digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Avalanche (AVAX).
Grayscale’s move represents its ongoing efforts to make cryptocurrency investing more accessible to traditional investors.
Grayscale’s Digital Large Cap Fund (GDLC)
The fund has $524 million in assets under management and has significant exposure to Bitcoin and Ethereum, accounting for nearly 75% and 19% of its holdings, respectively, according to a company report.
The remaining portion will be allocated to Solana, XRP, and Avalanche, providing investors with balanced exposure to established and emerging cryptocurrencies.
Grayscale is converting its fund to an ETF for the third time.
If approved, the ETF would mark Grayscale’s third fund conversion after converting its Bitcoin and Ethereum funds earlier this year.
A Grayscale spokesperson emphasized that the filing reflects the company’s commitment to improving the accessibility of the cryptocurrency asset class for mainstream investors.
The company aims to leverage the regulatory structure of ETFs to provide a more efficient and widely accepted investment vehicle that could attract additional interest from institutional and individual investors.
Parallel to Grayscale’s move, the market has seen a surge in ETF applications for various cryptocurrency assets.
Recently, Bitwise filed an application with the SEC seeking permission to list a spot XRP ETF, and Canary Capital filed an application to list XRP and Litecoin ETFs. However, these filings have not yet been approved, highlighting the regulatory uncertainty surrounding cryptocurrency-based ETFs in the United States.
Grayscale’s plan to convert GDLC into an ETF is consistent with its broader strategy to offer products that bridge the gap between traditional finance and the evolving digital asset landscape.
Along with the proposed transition, the company also introduced funds providing exposure to the XRP and AAVE governance tokens, reflecting its proactive approach to navigating the competitive and regulatory dynamics of the cryptocurrency market.