Grayscale Seeks SEC Approval to Convert Digital Large Cap Fund into Spot ETF
Grayscale, a leading U.S. digital asset firm, has filed an application with the Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded product (ETF).
The fund, which currently manages approximately $606 million in assets as of March 31, holds a diversified basket of major cryptocurrencies: Bitcoin (79.4%), Ethereum (10.69%), XRP (5.85%), Solana (2.92%), and Cardano (1.14%). Since its launch in 2018, GDLC has surged by around 479%.
Following an index rebalancing in January, Cardano (ADA) was added to the fund’s holdings, replacing Avalanche (AVAX) to align with the updated index composition. The proposed ETF aims to maintain similar allocations while expanding access for retail investors, reinforcing Grayscale’s broader mission of integrating crypto investments into mainstream financial markets.
This filing builds on a previous Form 19b-4 submitted by NYSE Arca last October. However, the final management fee structure remains unspecified in the S-3 registration statement.
With regulatory approval for spot Bitcoin and Ethereum ETFs in 2024, the move of Grayscale to convert GDLC reflects growing investor demand for regulated crypto investment products. The firm is also pursuing ETF approvals for other major digital assets, including XRP, Cardano, Litecoin, Solana, Dogecoin, Polkadot, and Avalanche.
According to Bloomberg analysts, Litecoin ETFs currently have the highest approval likelihood among pending crypto ETFs, followed by Dogecoin, Solana, and XRP.
