The Grayscale Digital Large Cap Fund ETF aims to introduce investors to a mixed basket of digital assets, including Solana and other altcoins beyond Bitcoin and Ethereum.
NYSE Arca has submitted an application to the SEC to list a Grayscale exchange-traded fund (ETF) that offers exposure to a variety of cryptocurrencies, aiming to broaden institutional access to digital assets.
The proposed Grayscale Digital Large Cap Fund ETF is based on the firm’s established crypto index portfolio, which includes major cryptocurrencies like Bitcoin, Ethereum, and Solana, as well as several altcoins. Grayscale filed on Oct. 16 to convert this fund into an ETF, and if approved, it would provide investors with a more diversified digital asset option compared to Bitcoin- or Ethereum-only ETFs.
What sets this fund apart is its tracking of the CoinDesk Large Cap Select Index, which includes five digital assets, offering broader exposure beyond just BTC and ETH. The fund currently manages about $565 million in assets.
Competition in the Market
Grayscale faces competition from Hashdex and Franklin Templeton, who have also applied for ETFs that would focus initially on Bitcoin and Ethereum. Other firms, such as VanEck, 21Shares, and Canary Capital, have filed for spot ETFs linked to cryptocurrencies like Solana, XRP, and Litecoin.
Industry experts indicate that the outcome of the U.S. presidential election could significantly affect crypto ETF regulation. Bloomberg ETF analyst Eric Balchunas noted that a victory by former President Donald Trump might lead to a more crypto-friendly SEC, possibly expediting ETF approvals for funds with diverse crypto assets.
NYSE Arca’s filing underscores the rising demand for diversified crypto index ETFs. Though the SEC has yet to approve a broad-based crypto index ETF, this proposal may signal new crypto investment opportunities, enhancing institutional access to the digital asset market.