Grayscale Investments has recently filed a request to convert its Grayscale Digital Large Cap Fund (GDLC:OTCQX) into an exchange-traded fund (ETF), expanding its range of crypto ETF offerings following the conversion of its bitcoin (BTC) and ether (ETH) funds earlier this year. The fund currently tracks the CoinDesk Large Cap Select Index, which evaluates the weighted performance of five of the largest cryptocurrencies in the market, including bitcoin (BTC), ether (ETH), solana (SOL), XRP (XRP), and avalanche (AVAX).
If approved and successfully converted into an ETF, the fund, which is currently traded over the counter, will be listed on the New York Stock Exchange. The filing for this conversion was submitted through a 19b-4 filing with the Securities and Exchange Commission (SEC) on Tuesday.
In a statement to CoinDesk, a spokesperson mentioned, “Today, Grayscale filed to uplist Grayscale Digital Large Cap Fund as a diversified multi-crypto asset ETP on NYSE Arca. The fund is currently trading under ticker: GDLC, and continues to meet growing demand by providing diversified exposure to crypto through a portfolio of market-leading digital assets. This filing reflects Grayscale’s steadfast commitment to making the crypto asset class more accessible for all investors.”
This proposed ETF conversion would mark Grayscale’s fifth ETF launch this year, following the conversions of the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE), as well as the introduction of two mini versions of the funds earlier in the year. However, data from Farside Investors indicates that both GBTC and ETHE have experienced outflows totaling over $23 billion since their launch in January and April, respectively.
The approval of these ETFs has sparked a new trend of applications to launch funds tracking smaller tokens, with issuers now seeking to create funds containing XRP, solana, and Litecoin (LTC). The Wall Street Journal was the first to report on this development.
Grayscale’s move to convert its multi-token fund into an ETF reflects the company’s dedication to providing investors with diverse opportunities to engage with the crypto market. This decision aligns with the increasing demand for crypto investment options and may open up new avenues for investors to participate in this evolving asset class.
As the crypto market continues to evolve and attract mainstream attention, initiatives like Grayscale’s ETF conversion play a crucial role in expanding access to digital assets and promoting greater adoption among traditional investors. By broadening the range of crypto investment products available through established platforms like the New York Stock Exchange, Grayscale is contributing to the maturation and integration of cryptocurrencies into the broader financial landscape.