02.07.2025 10:52

Grayscale Investments, a prominent digital asset manager, has received a landmark approval from the U.S. Securities and Exchange Commission (SEC). This approval allows the conversion of their Grayscale Digital Large Cap Fund into a spot Bitcoin ETF, a significant step towards mainstream crypto adoption.

The newly approved ETF will track the CoinDesk Large Cap Select Index, mirroring the performance of the five largest cryptocurrencies by market capitalization. Bitcoin dominates the fund with an 80.2% weighting, followed by Ethereum at 11.3%, XRP at 4.8%, Solana at 2.7%, and Cardano at a smaller 0.81% allocation. This strategic move by Grayscale aims to reduce arbitrage spreads and enhance the liquidity of its crypto holdings.

This victory marks a turning point for Grayscale, following the SEC's rejection of a similar application in June 2022. A subsequent legal challenge, resulting in a federal judge deeming the SEC's initial decision arbitrary and capricious, ultimately paved the way for this July 2025 approval. The SEC's decision signals a growing acceptance of digital assets within established regulatory frameworks.

Analysts are optimistic that this precedent will accelerate the approval of other single-asset crypto ETFs, potentially encompassing Litecoin (LTC), XRP, and Solana (SOL), further expanding investment options for institutional and retail investors. Grayscale's perseverance in navigating regulatory hurdles highlights the importance of sustained advocacy within the evolving cryptocurrency landscape. This achievement showcases the potential impact of persistent efforts to overcome regulatory challenges in the cryptocurrency industry.