- Grayscale Investments has filed to convert its Digital Large Cap Fund, which includes assets like Solana, XRP, and Avalanche, into an ETF.
- Additionally, Grayscale has hinted at listing other top tokens like Dogecoin, Toncoin and Worldcoin.
Grayscale investment has once again hit the headlines in the crypto industry. This comes after the largest crypto asset manager in the industry filed to convert its crypto funds into an ETF. These crypto funds include Bitcoin, Ethereum, Solana, XRP, and Avalanche.
This significant plea is yet another step in the assets manager’s roadmap to cementing its position in the cryptocurrency landscape. The firm submitted its 19b-4 form to the U.S. Securities and Exchange Commission (SEC), formally requesting permission to transition the trust into an ETF product.
Keeping this in mind, Grayscale has been a key figure in the crypto ETF sector. In fact, it was among the first asset manager firms to acquire a Spot Bitcoin ETF. Better yet, this didn’t come without a fight.
Grayscale’s legal battle with the SEC to convert GBTC into a spot Bitcoin ETF began in 2022. The company filed a lawsuit challenging the SEC’s decision to reject its application for the conversion. The court ruling in favor of Grayscale in August 2023 was a significant victory, as it ordered the SEC to reconsider its decision.
Fast forward to this year, the firm successfully converted its Ethereum Trust into a spot Ether ETF. The firm has shown a disregard for competitors and has been willing to take risks to gain an edge in the crypto ETF space. Taking into consideration that this is a rapidly growing market with fierce competition.
Evidencing these claims, as earlier reported, Canary Capital recently made headlines when it applied for an XRP ETF citing a “progressive regulatory environment” and growing demand from investors for access to cryptocurrencies beyond Bitcoin and Ethereum. Days after, the firm became more relentless and submitted its S-1 registration for a Litecoin ETF, citing Litecoin’s strong performance as one of the longest-running blockchains
Bitwise also applied for an XRP ETF, indicating that the appetite for such products is rapidly growing.
Also worth noting is that Grayscale has hinted at listing other top tokens like Dogecoin, Toncoin, and Worldcoin.
Grayscale’s latest move aims to curb the growing thirst of institutional investors who want exposure or for that matter diversify digital assets. Investors have shown great interest in assets beyond Bitcoin and Ethereum. Additionally, Nate Geraci has been vocal about the rising demand for crypto-based ETFs.
The institutional appetite for these products is expected to expand as more filings for crypto-based ETFs surface. Grayscale’s push to convert its Digital Large Cap Fund aligns with the growing momentum in this space.
Though these filings are still pending SEC approval, the broader crypto industry remains optimistic. Should the SEC reject Grayscale’s ETF conversion, the company may once again turn to legal action, as it did successfully with the GBTC conversion.
