Grayscale files S-3 to turn Bitcoin, Ether, XRP, and ADA large cap fund into a spot ETF

Key Takeaways

Grayscale is searching for regulatory greenlight to transform its Digital Massive Cap Fund right into a public ETF masking main crypto belongings.
The proposed ETF will embrace Bitcoin, Ethereum, XRP, Solana, and Cardano, with Bitcoin on the largest allocation.

American digital belongings large Grayscale has submitted an software to the Securities and Alternate Fee (SEC) to transform its Digital Massive Cap Fund right into a spot exchange-traded product (ETF).

The present fund, also called GDLC, at the moment holds a basket of main crypto belongings, together with Bitcoin (79.4%), Ethereum (10.69%), XRP (5.85%), Solana (2.92%), and Cardano (1.14%).

As of March 31, the fund had round $606 million in belongings beneath administration, in accordance with an replace on Grayscale’s official web site. It has gained round 479% since its 2018 launch.

Cardano (ADA) was added to the fund’s belongings in January following an index rebalancing, as famous within the S-3 submitting. This digital asset changed Avalanche (AVAX) to make the fund’s holdings match the brand new index composition.

The proposed ETF would keep related allocations whereas broadening retail traders’ entry. That is additionally a part of Grayscale’s mission to combine crypto investments into mainstream monetary markets.

The brand new submitting follows a Type 19b-4 submitted by NYSE Arca final October. The administration charge construction isn’t but finalized within the S-3 registration assertion.

With the rise of crypto ETFs, together with spot Bitcoin and Ethereum approvals in 2024, Grayscale’s ETF conversion of DLCS goals to satisfy rising investor demand for regulated crypto publicity.

Grayscale is actively searching for approval for a number of ETFs tied to main crypto belongings like XRP, ADA, Litecoin (LTC), Solana (SOL), Dogecoin (DOGE), Polkadot (DOT), and Avalanche (AVAX).

Bloomberg analysts assessed that Litecoin ETFs maintain the very best approval probability amongst upcoming crypto ETFs, adopted by Dogecoin, Solana, and XRP.