Grayscale Converts Large-Cap Fund Into SEC-Approved Crypto ETF - Crypto Economy

TL;DR

• Grayscale has received SEC approval to transform its Digital Large-Cap Fund into a regulated crypto ETF, giving traditional investors broader access to leading digital assets.
• The ETF includes Bitcoin, Ethereum, Solana, XRP, and Cardano.
• Analysts believe spot ETFs for altcoins like Solana and Litecoin could soon follow, potentially expanding crypto’s reach across mainstream financial platforms.

Grayscale’s Digital Large Cap Fund, now officially an exchange-traded fund, is designed to track the five most prominent cryptocurrencies by market value. With Bitcoin holding over 80% of the fund’s allocation, followed by Ethereum, Solana, XRP, and Cardano, the ETF provides exposure to a diversified mix of digital assets through the simplicity of a traditional exchange listing.

This transformation reflects a broader convergence between digital assets and legacy financial markets. Grayscale, known for launching the first Bitcoin trust and challenging the SEC’s previous denials in court, is now capitalizing on shifting regulatory tides. The company’s victory against the SEC in 2023 played a pivotal role in reshaping how digital investment products are treated under U.S. law.

The move could also reduce volatility for retail investors who prefer structured and regulated exposure to crypto. Unlike direct trading on exchanges, ETFs are accessible through most brokerage platforms, offering simplicity and tax advantages for some market participants. By shifting toward ETFs, firms like Grayscale are lowering the barriers that once kept everyday investors away from digital assets.

More Altcoins Could Follow As SEC Considers Process Reform

Recent developments suggest that Grayscale’s approval may be part of a broader regulatory adjustment. Reports indicate the SEC is exploring a streamlined ETF approval process, which would allow issuers to use a simpler S-1 filing instead of the longer 19b-4 route. If implemented, this could speed up listings for new crypto ETFs, reducing friction for both issuers and investors.

This comes just as the SEC recently authorized the first staked crypto ETF in the U.S., the Solana-based STAK fund. Analysts at Bloomberg now place a 95% likelihood on the approval of additional spot ETFs, including those for Solana, XRP, and Litecoin, possibly by October. Momentum is also building behind index-based crypto products and ETFs that include altcoins like Dogecoin and Cardano, signaling broader acceptance.

With growing institutional appetite for digital assets and the regulatory groundwork evolving, Grayscale’s move is more than just another ETF approval, it’s a signal that crypto is increasingly being integrated into the structure of modern finance. If SEC reforms proceed, a wider range of crypto-backed ETFs could soon reshape portfolios across Wall Street.