Grayscale Targeting Multi-Crypto ETF Including Solana, XRP and Avalanche
Grayscale Investments reportedly has filed an application with the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an exchange-traded fund (ETF). According to The Wall Street Journal, the development marks Grayscale's latest foray into extending its suite of ETF offerings beyond the two largest digital assets, Bitcoin and Ethereum.
The new ETF would expose investors to a diversified portfolio comprised of several main digital assets: Bitcoin, Ethereum, Solana, XRP, and Avalanche. Such a multi-asset solution may be an even more balanced entry point for investors seeking broad exposure to the cryptocurrency market through a regulated investment vehicle.
Grayscale's Digital Large Cap Fund portfolio counts about $524 million in assets under management and is heavily weighted towards Bitcoin and Ethereum. According to the company's documents, roughly 75% of the fund is invested in Bitcoin, while about 19% is taken up by Ethereum. The remainder is invested in Solana, XRP, and Avalanche, a strategy aimed at diversifying investments within the ecosystems.
The most recent filing by Grayscale comes months after it successfully converted its Bitcoin Trust and Ethereum Trust into spot ETFs. Those conversions came after a landmark court ruling compelled the SEC to reconsider its stance on cryptocurrency ETFs, following years of rejecting applications for such products.
If approved, the conversion of the Digital Large Cap Fund would mark the fifth ETF launch by Grayscale this year alone—a move that speaks volumes concerning the firm's aggressive strategy in broadening its product lineup to meet growing investor demand for exposure to a wider array of digital assets.
