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Grayscale Investments has filed to convert its Grayscale Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF), expanding its existing suite of crypto ETFs, according to a report by Helene Braun for CoinDesk. GDLC currently trades over-the-counter and tracks the CoinDesk Large Cap Select Index, offering exposure to five major cryptocurrencies: Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and Avalanche (AVAX), weighted by market capitalization.
Once approved by the U.S. Securities and Exchange Commission (SEC), the fund will trade on the New York Stock Exchange (NYSE) following a 19b-4 filing submitted by the exchange. A 19b-4 filing is a formal request that a stock exchange submits to the SEC to propose a rule change, such as listing a new security like an ETF. This filing requires the SEC to respond within a set timeframe.
A Grayscale spokesperson expressed confidence in the product’s future, stating that GDLC is designed to meet growing demand by providing diversified access to a portfolio of leading digital assets.
This filing comes after the successful conversion of Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) into ETFs earlier this year. However, both GBTC and ETHE have seen investor outflows exceeding $23 billion, according to Farside Investors. Despite these challenges, Grayscale has continued to explore new opportunities, with the filing for GDLC potentially marking the firm’s fifth ETF launch this year.
Grayscale’s moves have triggered renewed interest in the market, with other issuers filing for ETFs linked to smaller tokens like XRP, Solana, and Litecoin.
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