Grayscale Investments is pushing deeper into the ETF market, aiming to convert its Digital Large Cap Fund into an exchange-traded fund. The asset manager formally requested SEC approval on April 1, 2025, by submitting an S-3 form.
This move signals Grayscale’s ongoing strategy to bridge the gap between digital assets and traditional investment avenues. The SEC filing follows Grayscale’s earlier efforts to list a Hedera ETF, and coincides with Nasdaq’s moves to list Grayscale’s Avalanche (AVAX) and Polkadot ETFs.
Nasdaq’s interest includes a recent 19b-4 filing with the SEC to list and trade shares of Grayscale’s spot Avalanche ETF, attempting to convert Grayscale’s Avalanche Trust into a publicly traded fund. This initiative arrives amidst a broader surge of interest in altcoin ETFs, with firms like Canary Capital, 21Shares, and Bitwise also venturing into similar fund launches.
Speculation around XRP ETFs is also intensifying, fueled by optimism regarding the Ripple lawsuit. The SEC’s consideration of these funds has further energized market participants eager for diversified crypto investment products.