Grayscale, one of the largest digital asset managers in the world, has just taken an important step in its ambition to bring crypto ETFs to the market. The company has officially filed with the U.S. Securities and Exchange Commission (SEC) to request the conversion of the Digital Large Cap Fund into a crypto index ETF. This move indicates that the digital financial market is entering a new boom phase, with stronger participation from large institutions.
Grayscale Converts Crypto Fund to ETF – An Important Step Forward
On April 1, 2025, #Grayscale submitted an S-3 filing to the SEC, completing an important step to request the conversion of the Digital Large Cap Fund, a crypto index fund that has existed since 2018 but has not been publicly listed, into an ETF. Previously, in October 2024, the company also filed a 19b-4 application with the SEC to prepare for this process.
The Digital Large Cap Fund currently manages over $600 million in assets and is only open to accredited investors – that is, individuals or organizations with high net worth. This fund holds many leading crypto assets, including:
The operational model of the fund benefits investors as they can access various cryptos through a single investment product, rather than having to directly buy and store each type of digital asset.
Additionally, #NYSEArca – a U.S. stock exchange – filed a request with the SEC in October 2024 for permission to list this fund. If approved, this will be one of the first crypto index ETFs traded publicly in the U.S. market.
Crypto Index ETF – A New Trend in the Market
Grayscale's push to convert the fund shows that the race to launch crypto ETF products is hotter than ever. This comes against the backdrop of the Trump administration showing a more open attitude towards digital assets, creating significant opportunities for traditional financial institutions to participate in this market.
In December 2024, the SEC approved the first crypto index ETF, sponsored by Hashdex and Fidelity. However, these funds only focused on Bitcoin and Ethereum, and despite launching in February 2025, inflows remain limited.
In February 2025, the SEC continued to receive more than a dozen new crypto ETF filings, including:
Staking ETF – Allows investors to benefit from staking rewards.
Options ETF – Expanding derivative financial instruments in crypto.
Altcoin ETF – Targeting assets like SOL, XRP, and many other coins.
According to experts, following the success of Bitcoin and Ethereum ETFs, Wall Street is gradually shifting towards crypto index ETFs as a new investment tool.
Ms. Katalin Tischhauser, Head of Investment Research at the crypto bank Sygnum, stated:
"The next logical step is index ETFs, as these are effective investment tools – similar to how people buy the S&P 500 through ETFs. Crypto will also move in this direction."
Why is the conversion to ETF important?
Easier access: Once it becomes an ETF, the crypto fund will be publicly listed on the stock exchange, allowing retail investors to trade easily without going through traditional crypto platforms.
Institutional capital will flow into: Large investment funds often can only invest in assets managed within regulatory frameworks, and crypto ETFs will help them access the market without worrying about legality.
Increased liquidity and transparency: A public ETF will have a clear audit process, helping to boost investor confidence.
Reduced security risks: Instead of self-custodying crypto assets, investors can access the market through a professionally managed ETF.
Conclusion: Grayscale is at the Forefront of the Crypto ETF Revolution
Grayscale's filing to convert the Digital Large Cap Fund into an ETF shows that the crypto market is getting closer to traditional finance. If approved by the SEC, this will be one of the significant turning points that help crypto become part of the global financial system.
With the wave of crypto ETFs booming, investors may soon witness a more mature crypto market, with professional investment options more abundant than ever.
