Grayscale Investments has filed a crucial document with the U.S. Securities and Exchange Commission (SEC) seeking approval for the conversion of its Digital Large Cap Fund into an exchange-traded fund (ETF). This move aims to expand investor access by transitioning the private investment vehicle into a publicly traded product, broadening participation in the crypto market. 🎧
The fund currently holds assets including Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA), previously only available to accredited investors through private placements. This transformation would allow retail investors to gain exposure to a diversified portfolio of digital assets.
Since its launch in 2018, the fund’s value has experienced significant growth, soaring by 478.83%. Grayscale estimates that this fund covers approximately 75% of the digital asset market cap, excluding meme coins and stablecoins.
Grayscale’s plan aligns with its strategy to integrate crypto into mainstream investment opportunities, following a trend of expanding ETF approvals for cryptocurrencies such as spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May. 🚀
This latest application follows Grayscale’s continued efforts to launch an Avalanche (AVAX) ETF, which has recently been filed with the SEC by Nasdaq. The firm has also submitted a request for a Hedera (HBAR) ETF, reflecting its dedication to expanding crypto ETF offerings.