02.07.2025 07:07

The Securities and Exchange Commission (SEC) has given the green light to Grayscale Investments, authorizing the transformation of their Digital Large Cap Fund (GDLC) into a spot Bitcoin ETF. This landmark decision, evidenced by a recent SEC filing, allows the fund to trade on exchanges as an ETF, offering investors a more accessible entry point into the burgeoning cryptocurrency market.

This newly approved ETF, tracking the prices of Bitcoin, Ethereum, XRP, Solana, and Cardano, is predominantly weighted towards Bitcoin, currently holding approximately 80% of its assets in the leading cryptocurrency. The SEC's approval letter, released Tuesday, explicitly confirmed the fund's benchmark: the CoinDesk 5 Index (CD5). Since its inception in February 2018, GDLC has accumulated nearly $755 million in assets under management, and maintains a 2.5% expense ratio.

In an enthusiastic statement, Andy Baehr, CoinDesk Indices' head of product and research, expressed elation at the SEC's approval, highlighting the ETF's potential to reshape the digital asset investment landscape. He predicted the fund’s imminent transformation into the world’s largest multi-token digital asset ETF, providing investors and advisors a streamlined way to access the most prominent cryptocurrencies.

This significant development follows on the heels of Bitwise Asset Management's pending application. The SEC is currently reviewing Bitwise's request to convert their Bitwise 10 Crypto Index Fund (BITW) into an ETF. This fund also offers exposure to a diversified basket of cryptocurrencies including Bitcoin (79%), Ethereum, XRP, Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot. The SEC's decision on Bitwise's application is eagerly awaited by the industry. Information on this development was obtained from internet sources.