Grayscale Eyes Multi-Token ETF Conversion, Expanding Crypto Investment Options

Grayscale Investments has filed with the Securities and Exchange Commission (SEC) to convert its $524 million Digital Large Cap Fund (GDLC) into an exchange-traded fund, marking another significant move in the company’s ETF expansion strategy.

The filing, submitted through the New York Stock Exchange on October 14, seeks to transform the currently over-the-counter trading fund into what would be Grayscale’s fifth ETF launch this year. The fund tracks the CoinDesk Large Cap Select Index and offers diversified exposure to major cryptocurrencies, with Bitcoin comprising approximately 76% of holdings, followed by Ethereum at 18%, and smaller allocations to Solana, XRP, and Avalanche.

“This filing reflects Grayscale’s steadfast commitment to making the crypto asset class more accessible for all investors,” a company spokesperson stated, emphasizing their focus on meeting growing demand for diversified crypto exposure through market-leading digital assets.

The conversion attempt follows Grayscale’s successful launches of spot Bitcoin (GBTC) and Ethereum (ETHE) ETFs earlier this year, along with their corresponding “mini” versions. However, these previous conversions have experienced significant outflows, with investors withdrawing over $23 billion combined from the Bitcoin and Ethereum funds since their respective launches in January and April.

If approved, the fund would transition from its current over-the-counter trading status to listing on the New York Stock Exchange, potentially providing investors with easier access to a diversified cryptocurrency portfolio through a regulated investment vehicle. The move comes amid increasing interest in crypto-based ETFs, with various issuers recently filing for funds tracking individual tokens like XRP, Solana, and Litecoin.