Grayscale, a leading U.S. digital asset firm, has filed an application with the Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded product (ETF).
Grayscale's Initiative
Grayscale aims to expand retail investor access to crypto investments, supporting its mission to integrate digital assets into mainstream financial markets. This initiative is part of Grayscale's broader strategy to advance crypto investments through regulated exchange-traded products.
GDLC Fund Composition and Performance
As of March 31, the GDLC fund managed approximately $606 million in assets, holding a diversified basket of major cryptocurrencies: Bitcoin (79.4%), Ethereum (10.69%), XRP (5.85%), Solana (2.92%), and Cardano (1.14%). Since its launch in 2018, the fund has surged by around 479%. A recent index rebalancing in January added Cardano to the fund’s holdings, replacing Avalanche to align with the updated index composition.
Regulatory Outlook and Plans
With expected regulatory approval for spot Bitcoin and Ethereum ETFs in 2024, Grayscale’s move to convert GDLC reflects growing investor demand for regulated crypto investment products. The firm also plans to pursue ETF approvals for other major digital assets, including XRP, Cardano, Litecoin, Solana, Dogecoin, Polkadot, and Avalanche. According to Bloomberg analysts, Litecoin ETFs currently have the highest approval likelihood among pending crypto ETFs, followed by Dogecoin, Solana, and XRP.
As interest in regulated crypto products rises, Grayscale’s initiative may shift the market by providing investors with broader opportunities to participate in the digital economy.
