The U.S. Securities and Exchange Commission (SEC) has approved the conversion of the Grayscale Digital Large Cap Fund into a publicly traded ETF, opening new investment opportunities in crypto.
SEC Approval for Grayscale
On July 1, 2025, the SEC officially approved Grayscale Digital Large Cap Fund LLC's conversion into an exchange-traded fund (ETF) via an expedited process. This decision allows the fund to be publicly listed on NYSE Arca, providing access to a broader range of investors.
Fund Structure and Composition
The Grayscale Digital Large Cap Fund features a multi-asset structure with approximately 80% composed of Bitcoin, around 11% Ethereum, and individual components of Solana (SOL), Cardano (ADA), and XRP each making up less than 10%. This diversity offers investors moderate exposure to altcoins while being predominantly supported by the two leading cryptocurrencies.
Future Opportunities for Altcoin-Based ETFs
The approval of GDLC could signify a broader range of ETFs targeting other cryptocurrencies such as XRP, SOL, and ADA. Experts like Nate Geraci indicate that this decision may serve as a test case for integrating additional assets within an ETF format, marking important steps towards a more open regulatory stance regarding altcoins.
Thus, the SEC's approval of the Grayscale Digital Large Cap Fund as an ETF could be a pivotal moment for the ongoing development of the cryptocurrency market and potentially ease the path for new financial products focused on altcoins.
