The U.S. Securities and Exchange Commission (SEC) has formally acknowledged Grayscale Investments’ application to convert its Digital Large Cap Fund into a multi-asset spot exchange-traded fund (ETF). This procedural step initiates the regulatory review process for a product that would hold Bitcoin, Ethereum, XRP, Solana, and Cardano.
The proposed ETF aims to provide diversified cryptocurrency exposure through a single regulated investment vehicle. By including five major digital assets—BTC, ETH, XRP, SOL, and ADA—the fund would offer investors simplified access to core crypto market segments without requiring direct asset custody.
Approval would enable traditional brokerage account holders to gain crypto market exposure through conventional investment channels. This structure reduces technical barriers compared to direct cryptocurrency ownership while operating within established regulatory frameworks.
Market analysts suggest a green light could establish precedent for future multi-asset crypto ETFs, potentially enhancing market transparency and mitigating manipulation risks. The SEC’s engagement with Grayscale’s proposal signals regulatory recognition of evolving investor demand and the increasing complexity of digital asset markets.