Grayscale advances its Digital Large Cap ETF plans, awaiting SEC approval to bring diversified crypto exposure to investors - IcoHolder.
Grayscale has taken a significant step forward in its efforts to launch a Digital Large Cap Exchange-Traded Fund (ETF), filing an updated S3 registration statement to offer diversified exposure to major cryptocurrencies. The fund, called the Grayscale Digital Large Cap Fund (GDLC), is designed to provide investors with access to top digital assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP, all of which rank among the largest cryptocurrencies by market capitalization.
As part of its efforts to list GDLC on the NYSE Arca, Grayscale submitted a separate 19b-4 application on October 15, 2024, to the U.S. Securities and Exchange Commission (SEC). This filing is currently under review, with key deadlines fast approaching. The SEC is expected to make an initial decision by May 3, 2025, and a final ruling on the matter is anticipated by July 2, 2025.
Grayscale has made it clear that it will not proceed with launching the ETF unless it receives SEC approval for the NYSE Arca listing. In a recent update on social media, the company shared: "Today, we filed a registration statement on Form S-3 to register shares of Grayscale Digital Large Cap Fund (ticker: GDLC) under the Securities Act of 1933. This is another important step toward uplisting GDLC as an ETP. GDLC holds the top 5 crypto assets by market cap."
The GDLC ETF is designed to cater to the growing demand for crypto index funds. Similar to traditional market index ETFs like those tracking the NASDAQ or S&P 500, Grayscale’s offering is aimed at providing investors with a simple and efficient way to gain exposure to a basket of leading cryptocurrencies. This approach addresses the challenge of managing individual assets, providing diversification while minimizing risk.
Grayscale’s emphasis on top cryptocurrencies like BTC, ETH, SOL, ADA, and XRP reflects the firm’s strategy to offer a broad, diversified portfolio of digital assets. Interestingly, these same assets were previously mentioned by President Donald Trump in discussions surrounding the creation of a “digital asset stockpile.”
As the crypto space matures, index-based investment vehicles like ETFs are becoming an increasingly popular choice for both retail and institutional investors. With traditional markets having successfully integrated index funds, Grayscale’s Digital Large Cap ETF aims to replicate that success in the crypto market, offering a new avenue for diversified exposure to digital assets.
The approval of the GDLC ETF could mark a major milestone in the ongoing evolution of cryptocurrency investment, offering new opportunities for those looking to gain a foothold in the rapidly growing digital asset market. As Grayscale awaits the SEC's decision, the crypto world remains on edge, watching closely to see whether the regulatory body will pave the way for broader institutional adoption of cryptocurrency ETFs.
