Grayscale Files to Convert Its Digital Large Cap Fund into an Exchange-Traded Fund (ETF)

The fund currently manages over $520 million in assets, offering exposure to a basket of five cryptocurrencies, including Bitcoin, Ethereum, Solana, Ripple, and Avalanche.

Digital asset manager Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an exchange-traded fund (ETF), according to a report in The Wall Street Journal.

The fund currently manages over $520 million in assets, offering exposure to a basket of five cryptocurrencies, including Bitcoin, Ethereum, Solana, Ripple, and Avalanche, weighted at 75.58%, 17.83%, 4.16%, 1.76%, and 0.66% respectively.

“Today, Grayscale filed to uplist Grayscale Digital Large Cap Fund as a diversified multi-crypto asset ETP on NYSE Arca. The fund is currently trading under ticker: GDLC, and continues to meet growing demand by providing diversified exposure to crypto through a portfolio of market-leading digital assets. This filing reflects Grayscale's steadfast commitment to making the crypto asset class more accessible for all investors,” Grayscale said in a statement, Decrypt reported.

This application from Grayscale is particularly noteworthy as the SEC has yet to approve any multi-crypto ETF proposals. The recent approvals of Bitcoin and Ethereum ETFs, which allowed Grayscale to convert its Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE) into ETFs, suggest a potential shift in the regulatory landscape for cryptocurrencies in the United States.

If approved, the Digital Large Cap ETF would be a major milestone for the cryptocurrency industry, providing investors with a more regulated and liquid way to invest in a diversified portfolio of digital assets.

New Assets Under Consideration

Last week, the firm provided an update to the list of assets it is considering for listing either as single investment products or as part of its multi-asset products. The 35 newly added tokens span various categories, from meme coins to AI-related projects.

Assets under consideration: $AERO $AKT $APT $AR $ARB $ATOM $CELO $CORE $DOGE $ENA $FET $HNT $ICP $IMX $INJ $JUP* $KAS $MNT* $METIS $NEON* $OM $ONDO* $OP $PENDLE $POL $PYTH $RUNE $SEI $STRK $TIA $TON $TRX $UMA $VET $WLD*Assets not included in our Crypto Sectors as of 9.30.2024

Among the 36 cryptocurrencies under consideration are Kaspa (KAS), Aptos (APT), Arbitrum (ARB), Celestia (TIA), Celo (CELO), Core (CORE), Cosmos (ATOM), Internet Computer (ICP), Mantle (MNT), Metis (METIS), Neon (NEON), Optimism (OP), Polygon (POL), Sei (SEI), Starknet (STRK), Toncoin (TON), and TRON (TRX).

Other notable tokens being considered include Aerodrome (AERO), Ethena (ENA), Injective Protocol (INJ), Jupiter (JUP), Mantra (OM), Ondo Finance (ONDO), Pendle (PENDLE), THORChain (RUNE), Dogecoin (DOGE), Immutable (IMX), Akash (AKT), Arweave (AR), Artificial Superintelligence Alliance (FET), Helium (HNT), Pyth (PYTH), UMA Project (UMA), VeChain (VET), and Worldcoin (WLD).

These new additions could join the 29 tokens already included in Grayscale investment products. Grayscale periodically updates this list based on market conditions and investor demand.

The presence of some of these tokens on the list has generated considerable excitement among investors, who view it as a bullish signal for those projects. However, Grayscale has emphasized that not every asset under consideration will necessarily become an investment product.

Grayscale previously launched an Aave investment fund in October, an XRP Trust in September, and an Avalanche fund in August.