Grayscale Investments has submitted an S-3 filing with the U.S. Securities and Exchange Commission to transform its Digital Large Cap Fund into an exchange-traded fund.
This filing, dated April 1, aims to shift the private investment fund into a publicly traded entity, enhancing access for investors.
The Digital Large Cap Fund currently includes Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). Previously limited to accredited investors through private offerings, converting the fund into an ETF would permit retail investors to invest in a varied portfolio of digital assets.
Since its inception in 2018, the fund’s market price has increased by 478.83%, according to Grayscale’s data.
The firm has noted that the fund accounts for roughly 75% of the digital asset market capitalization, excluding meme coins and stablecoins.
Crypto Goes Mainstream
If this application is approved, it would further Grayscale’s goal of embedding cryptocurrency within mainstream investment channels. This filing is part of a larger trend of crypto ETF approvals, including spot Bitcoin ETFs approved in January 2024 and Ethereum ETFs in May.
In addition, Grayscale has been pursuing an Avalanche (AVAX) ETF, with Nasdaq recently submitting a 19b-4 form to the SEC for this purpose.
The firm has also filed for a Hedera (HBAR) ETF, demonstrating its ongoing commitment to expanding crypto-focused ETFs.