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Crypto asset manager Grayscale has received the greenlight from the US Securities and Exchange Commission (SEC) to convert its Digital Large-Cap Fund into an ETF (exchange-traded fund).
The fund comprises the 5 largest cryptos by market cap featured in the CoinDesk Five Index. This includes market leaders Bitcoin (BTC), Ethereum (ETH), as well as altcoins Solana (SOL), Ripple (XRP), Cardano (ADA).
The SEC approved the conversion a day before the deadline for the decision. In the past, the regulator has rejected Grayscale’s applications at the last minute.
Grayscale Fund Conversion Expected Given Heavy BTC And ETH Weighting
Around 80.2% of the converted fund’s weighting is BTC, while ETH, the largest altcoin by market cap, has a weighting of approximately 11.3%.
XRP has the next biggest weighting of 4.8%, while SOL and ADA have weightings of 2.7% and 0.81%, respectively.
The SEC approving the conversion of Grayscale’s Digital Large Cap Fund was expected, according to Bloomberg ETF analyst James Seyffart.
“Approval was our expectation,” he said in a July 1 X post, before adding, “The fund is over 90% Bitcoin and Ethereum.“
Approval was our expectation. The fund is over 90% Bitcoin and Ethereum. The next big date is @Bitwise‘s $BITW deadline of July 31. But SEC could obviously go early…
We wrote about this and more here for Bloomberg terminal clients: https://t.co/7C0bO3pcxB pic.twitter.com/BdHNe7ZQsS
— James Seyffart (@JSeyff) July 1, 2025
Bitwise, another crypto asset manager, is next in line to receive a decision from the SEC.
The firm is looking to convert its Bitwise 10 Crypto Index Fund (BITW) into an ETF. This fund currently holds 79% in Bitcoin, with the rest of BITW’s holdings including the likes of ETH, XRP, SOL, ADA, Sui (SUI), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC) and Polkadot (DOT).
Wave Of New ETF Applications Predicted In The Second Half Of 2025
Grayscale’s approved conversion comes as asset managers rush to file ETF applications for smaller altcoins such as Tron (TRX), Dogecoin (DOGE), SUI, AVAX, and LTC.
In a June 30 X post, Seyffart said that he and his colleague, Eric Balchunas, “expect a wave of new ETFs in this second half of 2025.”
The SEC has not yet approved ETFs that focus solely on altcoins.
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