Grayscale files to convert Digital Large Cap Fund into ETF

Grayscale Investments has filed an S-3 form with the U.S. Securities and Exchange Commission to convert its Digital Large Cap Fund into an exchange-traded fund.

The April 1 filing seeks to transition the private investment vehicle into a publicly traded product, broadening investor access.

The Digital Large Cap Fund currently consists of Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). Previously available only to accredited investors through private placements, the fund’s conversion into an ETF would allow retail investors exposure to a diversified basket of digital assets.

Since launching in 2018, the fund’s market price has surged 478.83%, according to Grayscale. 

The company has stated that the fund covers approximately 75% of the digital asset market cap, excluding meme coins and stablecoins.

Crypto going mainstream 

If approved, the move would align with Grayscale’s strategy of integrating crypto into mainstream investments. The filing follows a broader trend of crypto ETF approvals, including spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May.

Grayscale’s latest application follows its separate efforts to launch an Avalanche (AVAX) ETF, for which Nasdaq recently filed a 19b-4 form with the SEC. 

The firm also recently filed for a Hedera (HBAR) ETF, signaling its continued push for crypto ETF expansion.