The Securities and Exchange Commission (SEC) has approved Grayscale’s request to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund (ETF), according to a recent filing.
GDLC tracks the prices of major cryptocurrencies including Bitcoin, Ethereum, XRP, Solana, and Cardano. Bitcoin comprises about 80% of the fund’s allocation. The SEC noted that the fund is benchmarked to the CoinDesk 5 Index (CD5).
Launched in February 2018, GDLC manages nearly $755 million in assets and carries a 2.5% expense ratio.
Andy Baehr, head of product and research at CoinDesk Indices, commented, “We are thrilled to see SEC approval, paving the way for this Grayscale fund, benchmarked to the CoinDesk 5 Index, to be uplisted as an ETF, and enabling investors and advisors to capture the largest and most liquid digital assets in a single product.” He added that the fund is set to become the largest multi-token digital asset ETF globally.
Meanwhile, crypto asset manager Bitwise awaits the SEC’s decision on converting its Bitwise 10 Crypto Index Fund (BITW) into an ETF. BITW is composed of 79% Bitcoin and other assets such as Ethereum, XRP, Solana, Cardano, Sui, Chainlink, Avalanche, Litecoin, and Polkadot.