Grayscale moves to convert Digital Large Cap Fund into ETF: what it means for investors

• The firm has filed an S-3 form with the US Securities and Exchange Commission.
• The April 1 filing aims to transition the fund from a private investment vehicle to a publicly traded product.
• The DLC Fund, launched in 2018, holds a mix of leading cryptocurrencies.

Grayscale Investments is taking another major step in expanding crypto access for mainstream investors.

The firm has filed an S-3 form with the US Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund (DLC Fund) into an exchange-traded fund (ETF)—a move that could make diversified crypto exposure more accessible to retail investors.

The April 1 filing aims to transition the fund from a private investment vehicle to a publicly traded product, offering broader market participation.

The DLC Fund, launched in 2018, holds a mix of leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

Until now, it has been available only to accredited investors through private placements.

If approved, the ETF conversion would open the door for everyday investors to gain exposure to a diversified basket of digital assets through traditional stock exchanges.

Grayscale’s growing crypto ETF ambitions

Grayscale reports that the Digital Large Cap Fund has surged 478.83% since its inception, covering approximately 75% of the digital asset market cap—excluding meme coins and stablecoins.

The move aligns with the firm’s broader push to integrate crypto into mainstream financial markets, following the landmark approvals of spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May.

Beyond the DLC Fund, Grayscale is actively expanding its crypto ETF portfolio.

The firm recently filed for an Avalanche (AVAX) ETF, with Nasdaq submitting a 19b-4 form to the SEC.

Additionally, Grayscale has applied for a Hedera (HBAR) ETF, signaling its commitment to bringing more crypto assets into the regulated ETF market.

Grayscale’s latest filing underscores the growing institutional acceptance of digital assets and the increasing demand for regulated crypto investment products.

If approved, the Digital Large Cap Fund ETF could provide investors with an easier way to gain exposure to a broad range of cryptocurrencies—marking another step in the mainstream adoption of digital assets.