Grayscale Files to Convert Multi-Token Fund into ETF

Grayscale has filed a request to the SEC to convert its Digital Large Cap Fund into an exchange traded fund (ETF), as reported by The Wall Street Journal. The multi-token fund, which currently trades over the counter, tracks a market cap-weighted index composed of popular digital currencies including bitcoin (BTC), ether (ETH), Solana (SOL), Ripple Labs’ XRP token and Avalanche’s AVAX token.

This filing follows Grayscale's earlier conversions of its Bitcoin Trust and Ethereum Trust into spot ETFs earlier this year.

Managing roughly $524 million in assets, the Digital Large Cap Fund allocates around 75% to Bitcoin and 19% to Ethereum, with smaller portions invested in Solana, XRP, and AVAX, according to company documents.

The SEC's approval of Bitcoin and Ether spot ETFs earlier this year marked a significant shift, breaking the trend of previously denied applications. This decision followed a court ruling in favor of Grayscale that prompted the regulator to reevaluate its position.

The approval triggered a rally in Bitcoin and Ether prices and has since led to a wave of new filings from asset managers looking to introduce ETFs for smaller, riskier assets like Solana, XRP, and Litecoin.

If approved, Grayscale’s latest filing would mark its fifth ETF launch this year, underscoring the firm’s efforts to diversify its product offerings and meet growing investor interest in a wider range of digital assets.