- Grayscale filed to transform its $524M Digital Giant Cap Fund into an ETF
- The fund contains BTC, ETH, Solana, XRP, and Avalanche amongst its holdings
- That is Grayscale’s third ETF conversion after its Bitcoin and Ethereum funds
Grayscale Investments has taken a major step towards increasing its suite of cryptocurrency-based monetary merchandise by submitting with the US Securities and Change Fee (SEC) to transform its Digital Giant Cap Fund (GDLC) into an exchange-traded fund (ETF).
The GDLC, which at the moment trades over-the-counter, provides diversified publicity to a number of main digital property, together with Bitcoin (BTC), Ether (ETH), Solana (SOL), Ripple (XRP), and Avalanche (AVAX).
Grayscale’s transfer marks a continued effort by Grayscale to make cryptocurrency investments extra accessible to conventional buyers.
Grayscale’s Digital Giant Cap Fund (GDLC)
In keeping with the company’s report, the fund has $524 million in property beneath administration, with a major focus in Bitcoin and Ethereum, making up practically 75% and 19% of the holdings, respectively.
The remaining portion is allotted to Solana, XRP, and Avalanche, offering buyers with a balanced publicity to established and rising cryptocurrencies.
The third time Grayscale is changing a fund into an ETF
If permitted, the ETF would characterize Grayscale’s third conversion of a fund into an ETF, following its earlier transitions of Bitcoin and Ethereum funds earlier this yr.
A spokesperson from Grayscale emphasised that the submitting displays the agency’s dedication to enhancing the accessibility of the crypto asset class for mainstream buyers.
The corporate goals to leverage the regulatory construction of an ETF to supply a extra environment friendly and broadly accepted funding car, which might entice further curiosity from institutional and retail buyers.
In parallel with Grayscale’s transfer, the market has seen a surge in ETF filings for varied crypto property.
Lately, Bitwise submitted an software to the SEC looking for permission to record a spot XRP ETF and Canary Capital submitted applications to list XRP and Litecoin ETFs. Nonetheless, these filings have but to obtain approval, underscoring the regulatory uncertainty surrounding crypto-based ETFs in the USA.
Grayscale’s initiative to transform GDLC into an ETF aligns with its broader technique of providing merchandise that bridge the hole between conventional finance and the evolving digital asset panorama.
Alongside its proposed conversion, the agency has additionally launched funds that present publicity to XRP and the AAVE governance token, reflecting its proactive strategy to navigating the aggressive and regulatory dynamics of the crypto market.