Grayscale Files Application to Convert its Crypto Fund into an ETF

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Grayscale has submitted a request to the SEC to transform its Digital Large Cap Fund into an ETF.

This fund currently manages a diverse assortment of popular digital assets including BTC, ETH, SOL, XRP, and AVAX. Earlier this year, Grayscale successfully converted its Grayscale Bitcoin Trust and Ethereum Trust into spot ETFs.

As per company documents, the Digital Large Cap Fund currently has approximately $524 million in assets under management, with a majority (nearly 75%) allocated to Bitcoin and 19% to Ethereum.

The remaining portion of the portfolio includes smaller allocations to Solana, XRP, and AVAX.

This move by Grayscale follows the SEC’s recent approval of spot ETFs for Bitcoin and Ether, a significant change from its previous rejections of similar proposals. This shift came after a court ruling in favor of Grayscale, prompting the regulator to reconsider its stance.