Grayscale files for $600M crypto ETF conversion

Grayscale Investments has submitted an S-3 filing to the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an exchange-traded fund (ETF).

The fund, created in 2018, currently manages over $600 million in assets and includes a diverse portfolio of cryptocurrencies such as Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), Cardano (CRYPTO:ADA), and XRP (CRYPTO:XRP).

The filing, dated April 1, marks a significant step in Grayscale's effort to expand its offerings and make the fund accessible to a broader audience beyond accredited investors.

If approved, this would be one of the first ETFs to feature multiple cryptocurrencies, moving beyond the Bitcoin and Ether-focused products previously greenlit by the SEC.

Grayscale’s application follows an October 29 request by NYSE Arca to list the fund as an ETF.

The SEC now has up to 240 days to review and decide on the application.

Industry analysts view this move as part of a broader trend toward crypto index ETFs, which offer diversified exposure similar to traditional stock indices like the S&P 500.

“Index ETFs are efficient for investors—this will be the same in crypto,” said Katalin Tischhauser, head of investment research at Sygnum.

The push for multi-crypto ETFs comes amid a regulatory shift under President Donald Trump’s administration, which has adopted a softer stance on digital assets.

In December, the SEC approved mixed crypto index ETFs sponsored by Hashdex and Fidelity, although these funds only include Bitcoin and Ether.

Grayscale’s Digital Large Cap Fund is rebalanced quarterly to ensure alignment with market trends.

The fund’s composition reflects approximately 70% of the total market capitalisation of digital assets, offering investors exposure to leading cryptocurrencies without directly holding them.

If successful, Grayscale’s ETF conversion could pave the way for more diverse crypto investment products, further integrating digital assets into mainstream financial markets.

However, regulatory hurdles remain as the SEC continues to evaluate risks associated with multi-asset crypto funds.