Grayscale Investments has filed Form S-3 with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Digital Large Cap (GDLC) Fund into a publicly traded exchange-traded fund (ETF). The diversified fund holds Bitcoin, Ethereum, XRP, Solana, and Cardano, with over $796 million in assets under management as of June 12.
Regulatory approval for GDLC is expected to precede potential spot Solana ETFs, reflecting a strategic shift in the SEC’s approach. While Solana-focused ETF applications face heightened scrutiny through updated filing requests, GDLC benefits from an established regulatory framework due to its diversified asset composition.
Nate Geraci, president of The ETF Store, highlighted that GDLC’s approval could establish a precedent accelerating regulatory clearance for other cryptocurrency ETFs, including Solana-based products. The conversion aims to broaden investor access to major cryptocurrencies through traditional markets while mitigating custody and security barriers associated with direct holdings.
This initiative underscores the accelerating institutionalization of cryptocurrency investments, balancing regulatory compliance with market demand for diversified exposure. Grayscale’s move signals growing acceptance of multi-asset crypto products within established financial frameworks.