Grayscale has filed a new request with the United States Securities and Exchange Commission to convert its Digital Large Cap Fund into a spot exchange-traded fund. This move marks another step in the firm’s efforts to integrate digital assets into traditional financial markets.
One of the most notable aspects of this proposal is the inclusion of XRP alongside four other leading cryptocurrencies. The decision to feature XRP comes despite the token’s ongoing legal scrutiny, suggesting growing confidence in its regulatory standing and long-term viability.
Grayscale’s push for a multi-asset ETF follows its previous success in converting both its Bitcoin and Ethereum Trusts into spot ETFs, which officially began trading in early 2024. This shift highlights the firm’s commitment to expanding regulated investment options in the cryptocurrency space.
Currently, the Digital Large Cap Fund holds five digital assets, with Bitcoin leading the portfolio at 79.4%. Ethereum follows with a 10.69% allocation, while XRP ranks third with 5.85%, ahead of Solana at 2.92% and Cardano’s ADA at 1.14%. The fund’s structure is designed to offer diversified exposure to high-performing cryptocurrencies within a regulated framework.
The application, submitted on April 1, outlines Grayscale’s plan to provide both institutional and retail investors with access to a diversified portfolio of digital assets through a traditional brokerage account. By transitioning into an ETF, the fund aims to improve market liquidity and reduce the costs typically associated with crypto trusts. The proposed model would also allow for real-time trading, making digital asset investment more accessible and efficient.
As competition in the crypto ETF market heats up, firms are racing to introduce new offerings that extend beyond Bitcoin and Ethereum. The SEC’s response to Grayscale’s application will be pivotal, as it could signal broader institutional acceptance of multi-asset crypto ETFs.
The decision on this filing is expected to have significant implications for XRP and other altcoins. If approved, the fund could provide these assets with greater exposure to traditional financial markets, opening new opportunities for institutional adoption. As the crypto industry continues to evolve, regulatory developments like this will play a crucial role in shaping the future of digital asset investments.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist