- Grayscale filed to convert its $524M Digital Large Cap Fund into an ETF
- The fund contains BTC, ETH, Solana, XRP, and Avalanche amongst its holdings
- This is Grayscale’s third ETF conversion after its Bitcoin and Ethereum funds
Grayscale Investments has taken a major step towards increasing its suite of cryptocurrency-based monetary merchandise by submitting with the US Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF).
The GDLC, which at the moment trades over-the-counter, presents diversified publicity to a number of main digital belongings, together with Bitcoin (BTC), Ether (ETH), Solana (SOL), Ripple (XRP), and Avalanche (AVAX).
Grayscale’s transfer marks a continued effort by Grayscale to make cryptocurrency investments extra accessible to conventional traders.
Grayscale’s Digital Large Cap Fund (GDLC)
According to the company’s report, the fund has $524 million in belongings beneath administration, with a major focus in Bitcoin and Ethereum, making up almost 75% and 19% of the holdings, respectively.
The remaining portion is allotted to Solana, XRP, and Avalanche, offering traders with a balanced publicity to established and rising cryptocurrencies.
The third time Grayscale is changing a fund into an ETF
If authorised, the ETF would symbolize Grayscale’s third conversion of a fund into an ETF, following its earlier transitions of Bitcoin and Ethereum funds earlier this yr.
A spokesperson from Grayscale emphasised that the submitting displays the agency’s dedication to enhancing the accessibility of the crypto asset class for mainstream traders.
The firm goals to leverage the regulatory construction of an ETF to supply a extra environment friendly and extensively accepted funding automobile, which might appeal to extra curiosity from institutional and retail traders.
In parallel with Grayscale’s transfer, the market has seen a surge in ETF filings for numerous crypto belongings.
Recently, Bitwise submitted an software to the SEC looking for permission to listing a spot XRP ETF and Canary Capital submitted applications to list XRP and Litecoin ETFs. However, these filings have but to obtain approval, underscoring the regulatory uncertainty surrounding crypto-based ETFs within the United States.
Grayscale’s initiative to convert GDLC into an ETF aligns with its broader technique of providing merchandise that bridge the hole between conventional finance and the evolving digital asset panorama.
Alongside its proposed conversion, the agency has additionally launched funds that present publicity to XRP and the AAVE governance token, reflecting its proactive strategy to navigating the aggressive and regulatory dynamics of the crypto market.
