Grayscale Looks to Turn Multi-Token Fund Into ETF

• Grayscale has filed to convert the Grayscale Digital Large Cap Fund into an exchange-traded fund.
• The fund tracks the CoinDesk Large Cap Select Index which measures the market cap weighted performance of some of the largest cryptocurrencies.

Grayscale Investments has filed to turn its multi-token fund, the Grayscale Digital Large Cap Fund (GDLC:OTCQX), into an exchange-traded fund (ETF), adding to its offerings of crypto ETFs after the conversion of its bitcoin BTC$93,263 and ether ETH$1,787 funds earlier this year.

The fund tracks the CoinDesk Large Cap Select Index which measures the market cap weighted performance of five of the largest cryptocurrencies, including bitcoin BTC$93,263, ether ETH$1,787, solana SOL$150, XRP XRP$2, and avalanche AVAX$22.

Once approved and converted into an ETF, the fund which currently trades over the counter, will trade on the New York Stock Exchange, which submitted a 19b-4 filing with the Securities and Exchange Commission (SEC) on Tuesday.

“Today, Grayscale filed to uplist Grayscale Digital Large Cap Fund as a diversified multi-crypto asset ETP on NYSE Arca. The fund is currently trading under ticker: GDLC, and continues to meet growing demand by providing diversified exposure to crypto through a portfolio of market-leading digital assets. This filing reflects Grayscale’s steadfast commitment to making the crypto asset class more accessible for all investors,” a spokesperson told CoinDesk.

It would be Grayscale’s fifth ETF launch this year after the conversion of the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE) as well as two mini versions of the funds earlier this year.

Both GBTC and ETHE have bled money since launching in January and April as investors have pulled over $23 billion out of the two funds, according to data from Farside Investors.

The approval of the ETFs started a wave of fresh applications to launch funds tracking smaller tokens with issuers filing for funds holding Ripple's XRP, Solana's SOL and Litecoin's LTC.

The Wall Street Journal reported this story first.

UPDATE (Oct. 15, 2024, 22:31 UTC): Adds updated statement from Grayscale.