Grayscale, one of the leading investment firms in the crypto market, has taken a significant step to strengthen the bridge between traditional finance and digital assets. The company has filed an S-3 form with the U.S. Securities and Exchange Commission (SEC) to convert its private fund, the “Grayscale Digital Large Cap Fund,” into an exchange-traded fund (ETF).
This move marks the company’s second major transformation following the conversion of its Bitcoin Trust into an ETF last year. If approved by the SEC, investors will gain much easier access to a regulated and diversified portfolioconsisting of major cryptocurrencies such as Bitcoin, Ethereum, XRP, and Cardano.
Fund Structure: Balanced, Large-Cap, and Free from Speculation
Grayscale’s filing clearly outlines the fund’s scope and strategy. The asset allocation is as follows:
- 79.4% Bitcoin (BTC)
- 10.69% Ethereum (ETH)
- The remaining portion is allocated to large projects such as XRP, Solana, and Cardano
Grayscale also emphasizes that the fund does not include stablecoins or meme coins. Instead, it follows a structure that covers approximately 75% of the digital asset market by market capitalization. This approach makes the fund more stable and appealing to institutional investors.
The fund’s performance is also noteworthy. Launched in 2018, the Grayscale Digital Large Cap Fund has delivered a total market return of over 478% to date. The company continues to update its portfolio based on market conditions. For example, in January 2025, Avalanche (AVAX) was removed from the fund and Cardano (ADA) was added, reflecting the fund’s ability to adapt to evolving market dynamics.
What Does the ETF Conversion Mean?
Grayscale’s transition to an ETF not only reflects a shift in the company’s strategy but also signals the institutionalization of the crypto market. Once the conversion is complete:
- Retail investors will be able to access major digital assets through a regulated investment vehicle
- Investments could become more transparent and cost-effective
- Institutional interest could increase, leading to broader market participation and enhanced liquidity
This development marks a strategic move by Grayscale into the multi-asset ETF space. Following the success of the Bitcoin Trust, the company’s expansion into a multi-asset digital ETF highlights its commitment to broadening its product offerings.
