Grayscale Looks to Turn Multi-Token Fund Into ETF

As a seasoned crypto investor with over a decade of experience in this wild and dynamic market, I find myself intrigued by Grayscale’s latest move to convert their Digital Large Cap Fund into an exchange-traded fund (ETF). Having witnessed the transformation of their Bitcoin and Ethereum funds earlier this year, I can’t help but feel a sense of anticipation for what lies ahead.

As an analyst, I’m sharing that I’ve noticed Grayscale Investments has submitted an application to transform their multi-token fund, specifically the Grayscale Digital Large Cap Fund (GDLC:OTCQX), into a exchange-traded fund (ETF). This move expands their portfolio of crypto ETFs, following the transformation of their bitcoin (BTC) and ether (ETH) funds earlier this year.

This investment fund follows the CoinDesk Large Cap Select Index, a benchmark that evaluates the market cap-based performance of five significant cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Avalanche (AVAX).

After getting approval and being transformed into an Exchange Traded Fund (ETF), the current over-the-counter traded fund will begin trading on the New York Stock Exchange (NYSE). On Tuesday, they submitted a 19b-4 filing with the Securities and Exchange Commission (SEC) for this purpose.

Grayscale is constantly seeking chances to provide investments that match investor needs. On rare occasions, Grayscale might submit reservation filings, but such filings do not guarantee a product launch. The company will inform the public when new products become accessible,” a representative shared with CoinDesk.

This year, Grayscale is set to debut its 5th Exchange-Traded Fund (ETF), following the transformation of the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE), along with two smaller versions of these funds earlier this year.

Since their launches in January and April respectively, both GBTC and ETHE have experienced substantial outflows, with a total withdrawal of approximately $23 billion by investors, as reported by Farside Investors’ data.

The approval of the ETFs started a wave of fresh applications to launch funds tracking smaller tokens with issuers filing for funds holding XRP, solana and Litecoin (LTC).

The Wall Street Journal reported this story first.