#SECETFApproval Crypto asset manager Grayscale has received the greenlight from the US Securities and Exchange Commission (SEC) to convert its Digital Large-Cap Fund into an ETF (exchange-traded fund). The fund comprises the 5 largest cryptos by market cap featured in the CoinDesk Five Index. This includes market leaders Bitcoin (BTC), Ethereum (ETH), as well as altcoins Solana (SOL), Ripple (XRP), Cardano (ADA). The SEC approved the conversion a day before the deadline for the decision. In the past, the regulator has rejected Grayscale’s applications at the last minute.

Around 80.2% of the converted fund’s weighting is BTC, while ETH, the largest altcoin by market cap, has a weighting of approximately 11.3%. XRP has the next biggest weighting of 4.8%, while SOL and ADA have weightings of 2.7% and 0.81%, respectively.

The SEC approving the conversion of Grayscale’s Digital Large Cap Fund was expected, according to Bloomberg ETF analyst James Seyffart. “Approval was our expectation,” he said in a July 1 X post, before adding, “The fund is over 90% Bitcoin and Ethereum.“