Grayscale Files Request with SEC to Convert Digital Large Cap Fund into ETF

Grayscale has filed a request with the SEC to convert its Digital Large Cap Fund into an ETF, according to a report by The Wall Street Journal

Grayscale filed a request with the SEC to convert its Digital Large Cap Fund into an ETF, according to a report by The Wall Street Journal.

The fund, which currently holds a mixed portfolio of popular digital assets, will be converted into an ETF that tracks the performance of a basket of large-cap cryptocurrencies.

Grayscale’s latest filing follows its previous conversions of the Grayscale Bitcoin Trust and Ethereum Trust into spot ETFs earlier this year.

The Digital Large Cap Fund had approximately $524 million in assets under management at the end of December, according to a company document. Of the total, nearly 75% was allocated to Bitcoin and 19% to Ethereum. The remaining portfolio included smaller allocations to Solana, XRP, and AVAX.

The SEC’s approval of spot ETFs for Bitcoin and Ether earlier this year marked a major shift, ending a long history of rejected applications for such funds.

The change came after a court ruling in favor of Grayscale compelled the regulator to reconsider its stance.

The approval spurred a rally in Bitcoin and Ether prices and has fueled a wave of new filings from asset managers seeking to introduce ETFs for smaller and riskier tokens like Solana, XRP, and Litecoin.

Grayscale’s potential fifth ETF launch of the year highlights the firm's strategy to diversify its offerings and cater to investor demand for a broader range of digital assets.