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Grayscale has filed an application with the SEC to convert its digital large-cap fund into an ETF. The fund primarily invests in Bitcoin and Ethereum, accounting for almost 94% of its assets.
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The Wall Street Journal reports that Grayscale has filed with the SEC to convert its digital large-cap fund into an ETF.
The fund holds a mixed portfolio of popular digital assets such as BTC, ETH, SOL, XRP, and AVAX.
Grayscale’s latest filing follows the conversion of the Grayscale Bitcoin Trust and Ethereum Trust into spot ETFs earlier this year.
Digital Large Cap Fund manages approximately $524 million in assets, nearly 75% of which is allocated to Bitcoin and 19% to Ethereum. The rest of the portfolio consists of small allocations to Solana, XRP and AVAX, according to company documents.
The SEC’s approval of spot Bitcoin and Ether ETFs earlier this year marked a major change, ending a long history of applications for such funds being denied. The change came after a court ruling in Grayscale’s favor forced the regulator to reconsider its position.
The approval spurred a rise in the prices of Bitcoin and Ether, and sparked a new wave of applications by asset managers seeking to introduce ETFs for smaller, riskier tokens such as Solana, XRP, and Litecoin.
The launch of Grayscale’s potential fifth ETF of the year underscores the company’s strategy to diversify its offerings and meet investor demand for a broader range of digital assets.
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