The U.S. Securities and Exchange Commission (SEC) has approved the transition of Grayscale's Digital Large Cap Fund into a public ETF, marking a significant step for crypto investments.
A New Step for Crypto Investments
The SEC has fast-tracked the approval for Grayscale's Digital Large Cap Fund to change from a closed-end fund to a publicly traded ETF. This change allows a wider range of investors access to invest in a variety of major cryptocurrencies. The approval indicates a shift in how regulators are viewing digital assets.
Structure and Composition of GDLC
The Digital Large Cap Fund is designed to track the performance of the five largest cryptocurrencies by market value according to the CoinDesk 5 Index. Its current composition includes 80.2% Bitcoin, 11.3% Ethereum, and smaller portions of Solana (2.7%), XRP (4.8%), and Cardano (0.81%). The ETF structure helps ensure that the fund's price closely matches the value of its underlying crypto holdings after accounting for fees.
Future of Crypto ETFs
The SEC continues to evaluate other crypto-related ETF proposals. Recently, the SEC opened a 35-day public comment period for Franklin Templeton's applications to launch spot ETFs for XRP and Solana, originally filed in March 2025, under Section 6(b)(5) of the Exchange Act.
The approval of Grayscale's Digital Large Cap Fund to transition into an ETF opens new horizons for investors in the cryptocurrency space. It may signal the potential for a broader range of crypto ETFs in the future.
