Grayscale Investments filed to list an exchange-traded fund (ETF) holding a basket of spot cryptocurrencies. The Grayscale Digital Large Capital Fund has a crypto index portfolio that includes BTC, ETH, SOL, XRP, and ADA.
Asset manager Grayscale submitted an S-3 regulatory filing to the SEC to convert a non-listed fund to an exchange-traded fund.
Asset manager Grayscale Investments submitted an S-3 regulatory filing to the US Securities and Exchange Commission, seeking approval to convert a non-listed fund into an exchange-traded fund (ETF). In the April 1 filing, Grayscale seeks permission to convert its Grayscale Digital Large Cap Fund ($GDLC) into a spot ETF. The non-listed fund was created in 2018 and maintains a crypto index holding five main digital assets: Bitcoin (BTC), Ether (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL).
On its website, Grayscale explains:
“Grayscale Digital Large Cap Fund is among the first investment vehicles solely invested in, and deriving value from, a basket of large cap digital assets in the form of a security while avoiding the challenges of buying, storing, and safekeeping those digital assets directly.”
According to the asset manager, the Fund consists of assets that make up the CoinDesk Large Cap Select Index:
“Since July 1, 2022, the Fund Components have consisted of the digital assets that make up the CoinDesk Large Cap Select Index (the “DLCS”), as rebalanced from time to time, subject to the Manager’s discretion to exclude individual digital assets in certain cases.”
BTC represents 79.37% of the fund; ETH represents 10.83%; XRP represents 5.79%; ADA and SOL represent 1.14% and 2.87%, respectively.
As of April 1, the fund’s assets under management (AUM) are valued at $622 million and are only available to accredited investors. Grayscale explained after a six-month holding period, “shares are eligible to become unrestricted and resold in the public market.”
Grayscale’s submission comes days after US stock exchange Nasdaq submitted a filing to the SEC seeking approval to list Grayscale Investment’s spot Avalanche ETF.
The March 27 filing seeks a rule change to list the Grayscale Avalanche Trust. According to its website, the Grayscale Avalanche Trust currently holds over $155 million in assets under management.
Investment manager VanEck recently registered a trust company for an Avalanche ETF in Delaware. On March 10, the New York-headquartered company registered the “VanEck Avalanche ETF”.
There has been a notable increase in ETF filings under the Trump Administration and the SEC’s new leadership. Under its Acting Chairman, Mark T. Uyenda, the SEC has taken an improved view of crypto, which has encouraged institutions in the US to rush to offer new crypto products. Filings covering larger assets such as Solana (SOL), Ripple (XRP), and Dogecoin (DOGE) to smaller assets have been noted in applications.
Rex Shares and Osprey Funds submitted smaller asset filings for an ETF tracking the price of MOVE, the native token of the Movement Network. Canary Capital also recently took the first step towards an ETF application tracking the price of Sui.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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