Grayscale files to convert its mixed-crypto fund into an ETF, offering more accessible, liquid investment options for diverse cryptocurrencies.
Grayscale Investments filed a request to the U.S. Securities and Exchange Commission (SEC) to convert its mixed-crypto fund into an exchange-traded fund (ETF). The application was submitted on Tuesday. It aims to transform the firm’s Digital Large Cap Fund into an ETF. In addition, it will allow investors more accessible and regulated exposure to various cryptocurrencies.
The only currently officially quoted fund is the Digital Large Cap Fund, which is currently 75% invested in BTC. Ethereum (ETH) is 19%, and the rest of the allocation is in Solana (SOL), XRP, and Avalanche (AVAX). Currently, it has $524 million in assets under management and gives a good account of some of the market’s largest and most trending cryptocurrencies.
This is not the first time Grayscale has sought an ETF conversion for its investment product. The firm has in the past switched its Bitcoin and Ethereum holdings to ETFs, opening the door to more institutional and retail investors.
Grayscale Expands Offerings with XRP, AAVE Products Amid ETF Push
If the new ETF is approved, Grayscale could also tap into the growing interest in cryptocurrency by providing a more liquid investment. index funds are often considered more open to investors because of their ability to be sold on the common stock market. This would represent a rather drastic change from the current over the counter trading mode of Grayscale’s Digital Large Cap Fund.
Moreover, Grayscale is not the only company that has applied for crypto-related ETFs’ approval. More recently, both Bitwise and Canary Capital have also sought the approval of the SEC for spot XRP ETFs. However, the SEC has not approved any spot XRP ETF, and the process is rather heated. In fact, if such an ETF is one day approved, it can also be subjected to some form of regulation.
Grayscale has also broadened its products over the last few weeks, introducing new products that offer investment in XRP and AAVE tokens, which are used in decentralized finance. While providing new products, Grayscale also demonstrates the trend of the growing institutional demand for cryptocurrencies.
