SEC Approves Grayscale Conversion, Launching First U.S. Multi-Asset Crypto Spot ETF

The U.S. Securities and Exchange Commission (SEC) has approved Grayscale Investments’ request to convert its Digital Large Cap Fund (GDLC) into a spot exchange-traded fund, according to a filing issued on July 1.

NEW: There's the approval order for @Grayscale's $GDLC to convert into an ETF. This is their Digital Large cap fund that holds Bitcoin, Ethereum, Solana, XRP, and Cardano. Final deadline was tomorrow https://t.co/jSt1HBWD3E pic.twitter.com/9kALeDD2Uh

— James Seyffart (@JSeyff) July 1, 2025

The fund, which holds a basket of digital assets including Bitcoin, Ethereum, Solana, XRP, and Cardano, was initially launched in 2018 as a closed-end investment product for accredited investors.

Grayscale Expands ETF Lineup

According to the holdings data, Bitcoin and Ethereum account for the bulk of the fund’s portfolio, with a combined weight of over 91%. Bitcoin comprises 79.9% and Ethereum 11.3% of the portfolio, while XRP, Solana, and Cardano make up the remaining allocation.

The fund’s composition is based on market capitalization and is subject to quarterly rebalancing, reflecting relative shifts in asset size and liquidity.

With the conversion, GDLC will become a publicly traded ETF offering broader exposure to multiple crypto assets under a single structure.

The SEC’s approval came a day before the final deadline for review. GDLC will join the firm’s existing lineup of converted products, following the approval of the Grayscale Bitcoin Trust ETF (GBTC) in January 2025.

The ETF structure allows daily share creation and redemption, potentially reducing the premium and discount issues that affected GDLC as a closed-end fund.

SEC Greenlights ETF Tracking Bitcoin, Ethereum, and More

While spot Bitcoin ETFs have drawn institutional inflows in 2024, multi-asset crypto ETFs remain less common in U.S. markets. Grayscale’s GDLC conversion introduces one of the first regulated products tracking a broader set of digital assets, subject to periodic rebalancing.

Grayscale has also stated that any asset subject to enforcement action may be removed from the index during rebalancing.

Trading for the converted ETF is expected to begin shortly, pending final operational readiness and exchange coordination.

The approval brings attention to how multi-asset crypto funds are built and monitored. Unlike single-token ETFs, these products face questions about asset inclusion, index calculation, and handling of tokens flagged by regulators.

With more issuers exploring bundled crypto exposure, regulators and fund managers may need to set clear rules on portfolio structure, rebalancing practices, and disclosure requirements. GDLC’s conversion could mark the start of a broader move toward regulated multi-asset offerings.