Grayscale Files To Convert Digital Large Cap Fund Into ETF

According to CoinDesk, Grayscale Investments has filed to convert its Grayscale Digital Large Cap Fund (GDLC:OTCQX) into an exchange-traded fund (ETF). The fund, which tracks the CoinDesk Large Cap Select Index, measures the market cap weighted performance of five major cryptocurrencies: bitcoin (BTC), ether (ETH), solana (SOL), XRP (XRP), and avalanche (AVAX). A spokesperson for Grayscale emphasized that filing does not guarantee the product will come to market. The fund, currently trading over the counter, will trade on the New York Stock Exchange upon approval and conversion into an ETF. The NYSE submitted a 19b-4 filing with the Securities and Exchange Commission (SEC) on Tuesday. This move would mark Grayscale’s fifth ETF launch this year, following the conversion of its bitcoin and ether funds, as well as two smaller versions of these funds. Despite these launches, both the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE) have seen significant outflows, with investors pulling over $23 billion from the two funds since their inception. The approval of these ETFs has spurred a wave of new applications for funds tracking smaller tokens, with issuers filing for funds holding XRP, solana, and Litecoin (LTC).