SEC approves conversion of Grayscale’s crypto large-cap fund to an ETF

Key Points

1. The SEC approved Grayscale's Digital Large Cap Fund to convert into a spot ETF, enabling it to trade on NYSE Arca.

2. The fund tracks the CoinDesk 5 Index, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano.

3. At the time of approval, the fund's composition was approximately 80.2% Bitcoin, 11.4% Ethereum, 4.8% XRP, 2.8% Solana, and 0.8% Cardano.

4. Grayscale's Digital Large Cap Fund was launched in 2018 and has traded over the counter under the ticker GDLC since 2019.

5. The SEC approved the change through an accelerated rulemaking process and allowed amendments to NYSE Arca’s index-tracked portfolios.

6. To meet regulatory standards, at least 85% of the fund’s assets must consist of digital assets backing SEC-approved exchange-traded products.

7. Grayscale won a legal battle in 2023 after a federal judge ruled the SEC’s previous rejection of its Bitcoin ETF application was 'arbitrary and capricious.'