The Securities and Exchange Commission (SEC) Approves Grayscale Digital Fund ETF Conversion

The Securities and Exchange Commission (SEC) has granted accelerated approval for the Grayscale Digital Large Cap Fund to convert to an exchange-traded fund (ETF). The fund, which holds Bitcoin, Ethereum, Solana, XRP, and Cardano, will trade on NYSE Arca under amended Trust Units rules. This approval expands crypto ETF options beyond single-asset Bitcoin and Ethereum products, marking a step forward for diversified crypto ETFs in the U.S. market.

Key points:

• The fund holds five digital assets with a 80.4% Bitcoin weighting.
• The SEC approval signals growing regulatory acceptance of multi-asset crypto ETFs.
• The fund must maintain at least 85% of its components in commodities that underlie Commission-approved ETPs.
• Trading will halt if the fund falls below the 85% threshold until rebalancing occurs.