SEC Approves Grayscale’s Multi-Token ETF, Set to Become World’s Largest

Grayscale’s Digital Large Cap Fund (GDLC) is set to become the world’s largest multi-token digital asset ETF following approval from the U.S. Securities and Exchange Commission (SEC) to convert the fund into a spot exchange-traded fund, according to regulatory filings.

The newly approved ETF will track the prices of several major cryptocurrencies, including bitcoin (BTC), ethereum (ETH), XRP, solana (SOL), and cardano (ADA). Currently, bitcoin dominates the fund’s allocation, accounting for roughly 80% of its weight. The SEC’s approval letter confirmed that GDLC is benchmarked against the CoinDesk 5 Index (CD5).

Originally launched in February 2018, GDLC has amassed nearly $755 million in assets under management and carries an expense ratio of 2.5%.

“We are thrilled to see SEC approval, paving the way for this Grayscale fund, benchmarked to the CoinDesk 5 Index, to be uplisted as an ETF, and enabling investors and advisors to capture the largest and most liquid digital assets in a single product,” said Andy Baehr, head of product and research at CoinDesk Indices, in a statement.

Baehr added that the fund will become the world’s largest multi-token digital asset ETF upon its conversion.

Meanwhile, crypto asset manager Bitwise awaits the SEC’s decision on converting its Bitwise 10 Crypto Index Fund (BITW) into an ETF. BITW currently allocates 79% of its holdings to bitcoin, with the remainder spread across assets like ether, XRP, solana, ADA, Sui (SUI), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Polkadot (DOT).