Grayscale has filed a proposal with the US Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an exchange-traded fund (ETF). This move follows the SEC’s approval of spot Bitcoin and Ethereum ETFs, which has heightened expectations for the approval of other crypto-based ETFs, such as XRP. Grayscale’s multi-crypto fund, which trades over the counter, includes a mix of assets like Bitcoin, Ethereum, Solana, Ripple, and Avalanche.
According to the October 14 filing, the New York Stock Exchange (NYSE) submitted the request on Grayscale’s behalf, proposing a rule change to enable the new ETF listing. The fund’s largest allocations are to Bitcoin (75.59%) and Ethereum (17.83%), with smaller shares in SOL, XRP, and AVAX.
Despite optimism around these developments, experts caution that an XRP ETF is unlikely to be approved soon due to Ripple Labs’ ongoing legal issues with the SEC. Yuriy Brisov of the UK-based crypto law firm Digital & Analogue Partners noted that while Bitcoin and Ethereum have clearer regulatory frameworks, Ripple faces additional hurdles.
Grayscale’s latest ETF filing reflects its broader strategy to diversify its offerings, having already launched Bitcoin and Ethereum trusts, including mini versions aimed at retail investors. The company’s Bitcoin and Ethereum funds have seen outflows of $20 billion and $3 billion, respectively, though the mini funds have attracted over $700 million in inflows.
