Key takeaways
- Grayscale has filed with the SEC to convert its Digital Large Cap fund into an ETF.
- The fund invests primarily in Bitcoin and Ethereum, accounting for almost 94% of its assets.
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Grayscale has filed an application to the SEC to convert its Digital Large Cap Fund into an ETF, according to a report by the Wall Street Journal
The fund holds a mixed portfolio of popular digital assets including BTC, ETH, SOL, XRP and AVAX.
Grayscale’s latest filing follows its previous conversions of the Grayscale Bitcoin Trust and Ethereum Trust to spot ETFs earlier this year.
The Digital Large Cap Fund manages approximately $524 million in assets, of which almost 75% is allocated to Bitcoin and 19% to Ethereum. The rest of the portfolio consists of smaller allocations to Solana, XRP and AVAX, according to a company document.
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 forced the regulator to reconsider its position.
The approval sparked a rally in Bitcoin and Ether prices and fueled a wave of new filings from asset managers looking to introduce ETFs for smaller, riskier tokens like Solana, XRP and Litecoin.
Grayscale’s potential fifth ETF launch of the year highlights the company’s strategy to diversify its offerings and meet investor demand for a broader range of digital assets.
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