- Grayscale seeks SEC approval to convert its Digital Large Cap Fund into a diversified crypto ETF.
- The ETF aims to broaden access to top cryptocurrencies like Bitcoin, Ethereum, and Solana for retail investors.
Grayscale has filed for approval to convert its Digital Large Cap Fund into an exchange-traded fund (ETF). The new ETF would focus on a diversified portfolio of top cryptocurrencies. It would hold a mix of digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA).
Grayscale filed an S-3 regulatory document with the U.S. Securities and Exchange Commission (SEC) on April 1, seeking to list the fund on a traditional exchange.
Grayscale’s Digital Large Cap Fund
Initially launched in 2018, the Grayscale Digital Large Cap Fund currently holds assets worth over $600 million, with a portfolio comprising Bitcoin, Ethereum, XRP, Solana, and Cardano.
Bitcoin holds the largest share, making up 79.4% of the fund, followed by Ethereum at 10.69%. XRP accounts for 5.85%, Solana for 2.92%, and Cardano for 1.14%. The fund has historically been available only to accredited investors, including high-net-worth individuals and entities. The ETF conversion aims to make the fund more accessible to a broader range of investors, including retail investors.
In addition to these cryptocurrencies, the fund avoids meme coins and stablecoins, covering approximately 75% of the digital asset market cap. If approved, the conversion to an ETF would allow more investors to gain exposure to the fund without the barriers of accreditation.
SEC Filing and ETF Landscape
The regulatory filing follows a request by NYSE Arca to list Grayscale’s Digital Large Cap Fund on a U.S. securities exchange. This aligns with a broader movement in the crypto industry, where ETF issuers are accelerating their product launches.
In December 2024, the SEC approved the first batch of mixed crypto index ETFs that included Bitcoin and Ethereum.
These ETFs have attracted moderate interest since their debut in February 2025, with more filings expected for other cryptocurrencies such as Solana and XRP. These funds offer diversified exposure to digital assets, similar to traditional index ETFs like the S&P 500.
Katalin Tischhauser, head of research at Sygnum, explained that index ETFs are efficient for investors, a key reason Wall Street is focusing on them. In addition to Bitcoin and Ethereum, altcoins are now seeking ETF approval.
Grayscale’s Competitive Position
Grayscale’s ETF conversion is timely as the crypto market is showing growth despite macro headwinds. Grayscale’s Digital Large Cap Fund has increased by 479% since its inception and could benefit from this trend if the SEC approves the ETF.
The SEC’s deadline for the fund’s conversion as per the October 2024 filing is July 2025. Market analysts including Bloomberg’s James Seyffart are optimistic that Grayscale’s application aligns with the SEC’s timeline and index-based crypto ETFs will be approved by year end.
Grayscale has filed S-3 for Digital Large Cap ETF…
Holds btc, eth, xrp, sol, & ada.
NYSE had previously filed 19b-4 to list & trade this.
Sticking w/ prediction that index-based crypto ETFs will be approved by year-end (if not before then). pic.twitter.com/sBoKScthBx
— Nate Geraci (@NateGeraci) April 2, 2025
After the announcement, Bitcoin was up 2% in 24 hours to $84,584 and Ethereum was up 2.3% to $1,876. But other major cryptos like XRP, Solana, and Cardano remained flat.
Meanwhile, Grayscale updated its list of top crypto projects for Q2 2025 and added Maple (SYRUP), Geodnet (GEOD), and Story Protocol (IP). As reported by ETHNews Grayscale removed underperformers Arweave, Akash, and Jupiter.
Crypto index funds, like those tracking multiple digital assets, are gaining traction, as seen with products from Hashdex and Franklin Templeton. The crypto ETFs have brought enhanced liquidity to the market, with $36 billion in inflows since January 2024, according to SoSoValue data.
The post Grayscale Files for New ETF Covering Ethereum, Solana, Cardano, and XRP appeared first on ETHNews.
