Grayscale Seeks ETF Conversion for Multi-Crypto Fund Assets

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Grayscale has submitted an application to the SEC for converting its Digital Large Cap Fund into an ETF, as reported in areport by The Wall Street Journal.

The fund features a diversified portfolio of popular digital currencies such as BTC, ETH, SOL, XRP, and AVAX.

This latest application follows Grayscale’s previous successful conversions of the Grayscale Bitcoin Trust and Ethereum Trust into spot ETFs earlier this year.

The Digital Large Cap Fund manages roughly $524 million in assets, with about 75% invested in Bitcoin and 19% in Ethereum. The rest of the portfolio includes smaller allocations to Solana, XRP, and AVAX, based on company documents.

The SEC’s approval of spot ETFs for Bitcoin and Ether signifies a notable transition, concluding a lengthy period of denied applications for such funds. This shift ensued following a court ruling in favor of Grayscale, prompting the regulator to reevaluate its position.

This approval triggered a surge in prices for Bitcoin and Ether and incited a wave of new applications from asset managers eager to launch ETFs for lesser-known and riskier tokens like Solana, XRP, and Litecoin.

Grayscale’s prospective fifth ETF launch this year underscores the firm’s strategy to broaden its portfolio and respond to investor interest in a wider array of digital currencies.