02.07.2025 21:30

Grayscale Investments achieved a significant victory on Tuesday, securing approval from the Securities and Exchange Commission (SEC) to convert its Digital Large-Cap Fund (GDLC) into an exchange-traded fund (ETF). This landmark decision represents a substantial step forward in the mainstream acceptance of cryptocurrencies on Wall Street and paves the way for increased institutional investment in digital assets.

The newly launched ETF, listed on the NYSE Arca exchange, will track the CoinDesk Large-Cap Select Index, offering diversified exposure to the five largest cryptocurrencies by market capitalization: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Cardano (ADA). Bitcoin will dominate the portfolio, comprising approximately 80.2% of the total holdings, followed by Ethereum at roughly 11.3%, with Solana, XRP, and Cardano holding smaller percentages.

This transformative move by Grayscale builds upon its history of converting closed-end crypto trusts into more liquid and accessible ETF structures. The SEC's approval, however, is inextricably linked to a pivotal legal battle Grayscale waged in 2023. After the SEC initially rejected Grayscale's application to transform its Bitcoin Trust into an ETF, Grayscale successfully challenged this decision in federal court. A subsequent ruling deemed the SEC's rejection arbitrary and capricious, forcing a reconsideration of its stance and ultimately influencing subsequent approvals for spot Bitcoin ETFs.

The GDLC ETF stands out due to its provision of diversified exposure to a basket of leading cryptocurrencies within a single, regulated product. This development is indicative of a growing institutional interest in regulated crypto investment vehicles, and points toward a more accommodating regulatory climate for crypto-related funds. Investors now have easier access to a regulated index fund reflecting the performance of these major digital assets.