Grayscale Eyes ETF Conversion for Digital Large Cap Fund

Grayscale has submitted an S-3 form to the SEC to convert its Digital Large Cap Fund into a publicly traded ETF in the hopes of making crypto investments more accessible to retail investors. The Digital Large Cap Fund (GDLC) has about $606 million in assets at the moment and is available to accredited investors alone, having gained by about 479% since its launch in 2018. The portfolio of the fund consists of a blend of leading cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano.

The ETF aims to mirror the composition of the leading fund, with the largest being Bitcoin at 79.4%, then Ethereum at 10.69%, XRP at 5.85%, Solana at 2.92%, and Cardano at 1.14%. A 19b-4 filing on the NYSE Arca for listing the GDLC ETF had already been filed pending review by the SEC by critical decision deadlines.

SEC will have to make an initial ruling by May 3 and the final judgment by July 23 on listing of the ETF. Grayscale will go ahead with the listing launch of the ETF only if the SEC clears the listing on the NYSE Arca, showing increased appetite for regulated and diversified crypto investment products.