Grayscale Files to Launch an ETF That Would Track 75% of the Digital Asset Market Excluding Meme Coins and Stablecoins

If approved, it would bring the fund to a wider audience and track approximately 75% of the digital asset market, excluding meme coins and stablecoins.

U.S. crypto asset manager Grayscale has submitted a final prospectus for a broadly diversified ETF that would invest in a basket of 75% of the main digital assets, excluding meme coins and stablecoins.

The ETF filing was submitted through an S-3 form to the U.S. Securities and Exchange Commission (SEC) on April 1. If approved, it would bring the fund to a wider audience and track approximately 75% of the digital asset market. Grayscale has not disclosed the final management fee, which is subject to change.

The move comes after the approval of Bitcoin spot ETFs in January 2024, which sparked interest in new crypto ETFs. These were followed by Ethereum ETFs and a hybrid Bitcoin-Ethereum fund.

U.S. Bitcoin ETFs now manage $97.27 billion in assets, while Ethereum ETFs hold $8.59 billion, according to data from CoinGlass.

However, Grayscale’s flagship Bitcoin spot ETF has seen over $15 billion in outflows, marking the largest ETF withdrawal since March 2009. The rapid redemptions have raised concerns about how long the fund can sustain its Bitcoin reserves.

As crypto ETFs gain traction, issuers have begun filing for funds tracking alternative assets, including Dogecoin, XRP, Solana, and Donald Trump’s meme coin.

Earlier this week, Bloomberg ETF analyst Eric Balchunas had speculated that the DOGE and TRUMP ETFs could launch in early April. However, a recent poll by Myriad Markets suggests otherwise, with 93% of voters believing the TRUMP ETF will not materialize by the end of the month.

Crypto index ETFs are becoming a priority for fund managers looking to expand offerings beyond single-asset products. The SEC approved the first mixed crypto index ETFs in December 2024, sponsored by Hashdex and Fidelity, although these only include Bitcoin and Ethereum. Since their February launch, they have seen relatively modest inflows.

“Index ETFs provide an excellent level of efficiency for investors in the same way that traditional market index funds do,” said Katalin Tischhauser, head of investment research at crypto bank Sygnum.