The U.S. Securities and Exchange Commission has approved Grayscale’s conversion of its Digital Large-Cap Fund into an exchange-traded fund (ETF). The fund’s portfolio features significant exposure to Bitcoin (80.2%) and Ether (11.3%), supplemented by allocations to Solana, XRP, and Cardano.
Transition to an ETF structure aligns trading prices more closely with net asset value, reducing historical arbitrage opportunities. This milestone follows Grayscale’s successful August 2023 legal challenge where federal courts overturned the SEC’s initial rejection as ‘arbitrary and capricious.’
The ETF framework enables broader investor access to diversified cryptocurrency exposure through a single vehicle. Industry observers anticipate this approval may catalyze further regulatory acceptance for crypto ETFs, signaling strengthened institutional adoption pathways.