The United States Securities and Exchange Commission (SEC) has approved the conversion of Grayscale’s Digital Large Cap Fund into a spot exchange-traded fund (ETF). This significant move allows investors to gain exposure to major cryptocurrencies held by the fund, including Bitcoin, Ethereum, XRP, Solana, and Cardano.
SEC Approves Grayscale’s Conversion to Spot ETF
Announced on July 1, 2025, this decision reflects the SEC’s growing acceptance of regulated cryptocurrency investment products. The green light for Grayscale’s digital large cap fund adds to the range of spot ETFs available in the United States, which also includes Bitcoin and Ethereum ETFs previously approved in 2024.
The newly approved fund will now trade on the NYSE Arca, with the SEC’s final decision deadline being July 2, 2025. According to James Seyffart, an analyst at Bloomberg ETF, “Approval was expected. The fund is made up of over 90% Bitcoin and Ethereum. The next notable date is for Bitwise’s BITW on July 31, but the SEC could announce early.”
This ETF will consist of a leading cryptocurrency basket, comprising roughly 79.4% Bitcoin, 11.6% Ethereum, 4.8% XRP, 2.9% Solana, and 0.8% Cardano, mirroring the fund’s current holdings.
Grayscale initially filed for this conversion on April 1, 2025, proposing a spot ETF structure to offer investors direct exposure to these assets. Following regulatory feedback, the company submitted a revised application on June 30, 2025, with the SEC confirming the fund’s eligibility for listing and trading shares ahead of schedule.
Analysts Anticipate Further Crypto Spot ETF Approvals
Industry analysts suggest that the SEC’s approval of Grayscale’s ETF signifies potential upcoming approvals for additional spot cryptocurrency ETFs. Eric Balchunas, a Bloomberg ETF analyst, underscored expectations for imminent SEC approvals, noting the lack of comments on pending filings from REX and Osprey Funds for a Solana (SOL) spot ETF. This ETF, set to launch on July 3, is notable as the first crypto ETF with staking yield features in the United States.
Recently, the SEC postponed decisions on several crypto spot ETFs, including those for XRP and SOL.
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