On March 31, 2025, Grayscale Investments – one of the largest Bitcoin ETF issuers – filed an application to convert the Digital Large Cap Fund (DLC) into a publicly traded ETF. With a portfolio including Bitcoin, Ethereum, XRP, Solana, and Cardano, this move could open significant opportunities for retail investors. Could this be a turning point for the crypto market in the U.S.?
Digital Large Cap Fund: The 'Giant' Behind Grayscale
#Grayscale has submitted an S-3 form to the U.S. Securities and Exchange Commission (SEC) on Monday (March 31), proposing to convert the Digital Large Cap Fund – currently only for accredited investors – into an ETF. This fund, launched in 2018, currently holds Bitcoin (79.4%), Ethereum (10.69%), XRP (5.85%), Solana (2.92%), and Cardano (1.14%). Cardano was added in January 2025, replacing Avalanche (AVAX) after the fund index was rebalanced.
As of now, the market value of the fund has increased by 478.83% since its inception, according to Grayscale's website. This fund accounts for about 75% of the market capitalization of digital assets (excluding meme coins and stablecoins), and is one of Grayscale's most diversified portfolios.
Conversion to ETF: Opportunities for All Investors
Currently, the DLC fund is only available to accredited investors through private placements. If approved by the SEC, the conversion to an ETF would allow retail investors to access the crypto market through a public exchange. This removes a significant financial requirement barrier, expanding opportunities for millions wanting to invest in $BTC , Ethereum, $XRP , Solana, and $ADA without having to directly own a crypto wallet.
Grayscale's application is incomplete, including the exact management fee ratio, and may change. However, this move is in line with the trend of crypto ETFs in the U.S. since the first spot Bitcoin ETF was approved in January 2024, followed by the Ethereum ETF in May 2024 and the combined Bitcoin-Ethereum fund thereafter. According to CoinGlass, the Bitcoin ETF in the U.S. currently manages $97.27 billion in assets, while the Ethereum ETF has $8.59 billion.
Regulatory Context: A Wave of New ETFs
Donald Trump's victory in the 2024 U.S. presidential election has created a new regulatory environment, encouraging issuers to experiment with innovative crypto funds. In addition to Bitcoin and Ethereum ETFs, many applications for ETFs for Dogecoin, Bonk, and even the memecoin Official Trump (TRUMP) have been submitted, though not yet approved. Bloomberg's senior ETF analyst, Eric Balchunas, predicts that DOGE and TRUMP ETFs could launch in early April 2025, based on the type of application submitted. However, the Myriad Markets prediction suggests that this possibility is low, with 93% of participants believing that the TRUMP ETF will not appear before the end of April.
Impact on the Crypto Market
Bitcoin (~$88,000): New ETFs could increase demand, supporting long-term prices.
XRP (~$2.32), Solana (~$150): Inclusion in ETFs will enhance legitimacy and attract institutional capital.
Overall market: ETFs expand access, driving adoption in the U.S. (North Carolina 5% pension funds, Trump supports crypto).
Conclusion: Is Grayscale Opening the Door to the Future?
Grayscale's request to convert the DLC into an ETF is a strategic move, leveraging the wave of crypto support in the U.S. With a diverse portfolio (Bitcoin, Ethereum, XRP, Solana, Cardano) and the potential to reach millions of investors, this fund could be a game changer. Will the new ETFs be approved and push crypto prices to new heights, or will regulatory barriers stand in the way? As the U.S. leads the trend #ETFcrypto , the answer will soon be clear.
Risk warning: Investing in crypto carries high risks due to price volatility and regulatory changes. Please consider carefully before participating.