The U.S. Securities and Exchange Commission (SEC) has approved Grayscale’s Digital Large Cap Fund to convert into a spot exchange-traded fund (ETF) listed on NYSE Arca. The fund will track the CoinDesk 5 Index, providing diversified exposure to Bitcoin (BTC), Ethereum (ETH), XRP, Solana, and other major digital assets.
The approval followed an accelerated rulemaking process requiring amendments to NYSE Arca’s index portfolios. This establishes a formal regulatory framework for cryptocurrency ETFs, setting significant precedents for future offerings.
The decision builds upon Grayscale’s pivotal 2023 legal victory where courts overturned the SEC’s previous rejection of its Bitcoin ETF proposal, deeming the denial arbitrary and capricious.
Market analysts expect the fund to enhance liquidity while creating a regulatory benchmark for future multi-asset crypto ETFs, reflecting accelerating institutional demand for digital asset exposure.
Asset managers including Bitwise, Hashdex, and Franklin Templeton have filed for similar diversified crypto ETFs, signaling intensifying competition in cryptocurrency investment products.