Key Takeaways:
- Grayscale is trying to turn its crypto fund into an ETF so more people can invest in Bitcoin, Ethereum, and other top digital coins.
- If approved, the ETF will give investors access to 75% of the crypto market without owning the coins directly.
- Crypto ETFs are becoming more popular, but some experimental ones, like Dogecoin and Trump-themed ETFs, still face approval challenges.
Grayscale Investments, one of the biggest names in cryptocurrency asset management, is making a bold move to expand access to digital assets.
The firm has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to convert Digital Large Cap Fund into an exchange-traded fund (ETF) that would become broadly available to public investors.
This fund, which currently includes Bitcoin, Ethereum, XRP, Solana, and Cardano, is currently restricted to accredited investors only. If the conversion succeeds, it will open the door for everyday investors to gain exposure to a broad crypto market without needing to own the assets directly.
Grayscale’s plan follows a series of ETF approvals that have really changed the crypto industry, beginning with the first batch of Bitcoin spot ETFs in January 2024, followed by Ethereum ETFs in May.
Now that momentum is building with crypto ETFs, Grayscale is looking to make its multi-asset fund more accessible.
What’s Inside the Fund?
Unlike single-asset ETFs that track only Bitcoin or Ethereum, Grayscale’s Digital Large Cap Fund holds a mix of major cryptocurrencies. As of now, Bitcoin dominates the portfolio with a 79.4% share, followed by Ethereum with 10.69%. Ripple (XRP) holds 5.85%, Solana 2.92%, and Cardano 1.14% to round out the allocation.
Notably, Cardano was only added in January 2025, taking Avalanche’s place after an index rebalancing. Since its launch in 2018, the total market value of this fund has grown by 478.83%, showing its strong performance over the long term.
The ETF process still has some issues to work out. Grayscale’s filing hasn’t yet specified finalized management fees or further details, which means things might change before regulation approval by the SEC.
However, if successful, it would offer exposure to about 75% of the total market capitalization of the current crypto market, excluding premium coins and stable coins.
A Shifting Regulatory Landscape
The world of crypto investing is moving fast, especially since Donald Trump won the U.S. presidential election. Some experts believe this could lead to friendlier rules for crypto, making it easier to launch new ETFs.
In response, issuers have been racing to file ETF applications, including some for Dogecoin (DOGE), Bonk, and even a Trump meme coin ETF. So far, none of these have been approved.
Bloomberg ETF analyst Eric Balchunas, speculates that the DOGE and TRUMP ETFs could be approved as early as April due to their specific filing type. However, the prediction market Myriad Markets suggests otherwise, with their vote showing that 93% of voters believe the Trump ETF won’t launch by the end of April.
This shows the uncertainty regarding meme coin ETFs despite the broader acceptance of mainstream crypto ETFs.
Why This Matters for Investors
If Grayscale’s plan works, it could be another big step for crypto investing in regular stock markets.
Right now, ETFs for Bitcoin and Ethereum do an outstanding job, holding a total sum of almost $97.2 billion with Bitcoin ETFs and $8.59 billion with Ethereum ETFs.
This shows very serious interest in crypto investments. Grayscale’s fund would provide more people an easy way to invest in different types of cryptocurrencies without having to purchase and store them directly.
