Grayscale Has Filed with the SEC to List Its Digital Large Cap Fund as an ETF on NYSE Arca

Crypto asset manager Grayscale Investments filed a Form S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) on March 31 to register and list shares of its Grayscale Digital Large Cap Fund on the NYSE Arca under the symbol GDLC.

Crypto asset manager Grayscale Investments has filed a Form S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) to register and list shares of its Grayscale Digital Large Cap Fund on the New York Stock Exchange Arca (NYSE Arca). The move will convert the fund into an exchange-traded fund (ETF) and expand public trading access to a diversified digital asset fund.

The fund, which will trade under the ticker GDLC, is designed to provide broad exposure to the digital large-cap asset class. Its holdings are determined by the Coindesk Large Cap Select Index (DLCS), which selects the top digital assets by market capitalization that are also available for custody on Coinbase Custody and meet other criteria.

As of March 31, the fund’s top five holdings are bitcoin (BTC), ethereum (ETH), XRP, solana (SOL), and cardano (ADA). The portfolio composition by weight is bitcoin at 79.40%, ethereum at 10.69%, XRP at 5.85%, solana at 2.92%, and cardano at 1.14%.

The fund’s investment objective is for the value of the shares (based on NAV per share) to reflect the value of the digital assets held by the fund, in accordance with the DLCS, plus any cash held by the fund and reduced by the fund’s expenses and other liabilities.

Currently, only cash-based creation and redemption of shares are available, and no staking of the fund’s assets is permitted. The fund is subject to the terms of an administrative agreement with Grayscale and the provisions of the Articles of Association of the fund, which is governed by the laws of the Cayman Islands.

The launch of the ETF will depend on the SEC’s approval of a separate 19b-4 application submitted by NYSE Arca in October 2024. Grayscale stated:

The Fund will not seek effectiveness of this registration statement and no offering of shares hereunder will take place unless and until such approval is obtained by the SEC and the shares are approved for listing by NYSE Arca.

The SEC is currently reviewing several applications for bitcoin ETFs from various asset managers, including WisdomTree (NYSE: WISTR), CoinShares (LON:COIN) and Bitwise, in addition to the 19b-4 application from NYSE Arca for the Grayscale Digital Large Cap Fund.

Earlier this year, the agency rejected applications from asset managers WisdomTree and Spark Digital Capital for bitcoin futures ETFs, despite the approval of similar products from other firms in 2021.

Despite the setbacks in its bid to list a bitcoin ETF earlier this year, crypto asset manager Grayscale is making progress in expanding the trading of its flagship investment vehicle.

Earlier this year, the firm began offering a redemption program for its Grayscale Bitcoin Trust (BTC) (NYSE: GBTC) and also announced plans to pursue an uplisting of the trust’s shares to an ETF.

Now, the firm has filed a Form S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) to register and list shares of its Grayscale Digital Large Cap Fund on the New York Stock Exchange Arca (NYSE Arca).

The move will convert the fund into an ETF and expand public trading access to a diversified digital asset fund.

The fund, which will trade under the ticker GDLC, is designed to provide broad exposure to the digital large-cap asset class. Its holdings are determined by the Coindesk Large Cap Select Index (DLCS), which selects the top digital assets by market capitalization that are also available for custody by Coinbase Custody and meet other criteria.

As of March 31, the fund’s top five holdings are bitcoin (BTC), ethereum (ETH), XRP, solana (SOL), and cardano (ADA). The portfolio composition by weight is bitcoin at 79.40%, ethereum at 10.69%, XRP at 5.85%, solana at 2.92%, and cardano at 1.14%.

The fund’s investment objective is for the value of the shares (based on NAV per share) to reflect the value of the digital assets held by the fund, in accordance with the DLCS, plus any cash held by the fund and reduced by the fund’s expenses and other liabilities.

Currently, only cash-based creation and redemption of shares are available, and no staking of the fund’s assets is permitted. The fund is subject to the terms of an administrative agreement with Grayscale and the provisions of the Articles of Association of the fund, which is governed by the laws of the Cayman Islands.

The launch of the ETF will depend on the SEC’s approval of a separate 19b-4 application submitted by NYSE Arca in October 2024. Grayscale stated:

“The Fund will not