Grayscale, a crypto-focused platform for asset management, has recently gained an exclusive right to launch a spot exchange-traded fund (ETF). As per the reports, the United States Securities and Exchange Commission has permitted Grayscale to convert the Digital Large-Cap Fund into a spot ETF. This denotes another notable move to boost crypto investment products’ mainstream adoption.
SEC Allows Grayscale to Transform Digital Large-Cap Fund into ETF
After getting approval from the U.S. SEC, Grayscale can now launch an ETF based on the Digital Large-Cap Fund. The respective fund reportedly tracks the CoinDesk Large-Cap Select Index. Additionally, it comprises the 5 biggest crypto assets in terms of market capitalization. These cryptocurrencies include Bitcoin ($BTC), Ethereum ($ETH), $XRP, Solana ($SOL), as well as Cardano ($ADA).
In this respect, Bitcoin comprises 80.2% share while Ethereum holds 11.3% share. Subsequently, Cardano’s 0.81% share comes after $XRP and Soalna’s 4.8% and 2.7% shares. This development is included in Grayscale’s wider strategy to transform crypto trusts into exchange-traded funds. This conversion pays considerable attention to decreasing arbitrage spreads.
SEC’s Rejection in 2022 Ultimately Leads to Present Triumph
Grayscale considers this approval a major win after the submission of a legal petition back in 2022’s June following SEC’s rejection. However, a federal judge backed Grayscale a year after in August. The judge ruled that the decision taken by the SEC was capricious and arbitrary. Thus, this ultimately led to the current victory.
The SEC’s approval occurred at the start of July 2025, indicating the expansion in acceptance of diverse digital assets within notable regulated frameworks. Analysts consider this move to be a crucial development to enhance possibility of more single-asset ETFs, including $LTC, $XRP, and $SOL. Overall, during this month, the efforts of Grayscale signify the importance of persistence to overcome the regulatory resistance.
