The U.S. Securities and Exchange Commission (SEC) has approved the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a spot cryptocurrency ETF, according to filed documents.
Key Details of the Approved ETF
- Assets Under Management: $755 million (~¥108 billion at ¥143/$1).
- Tracked Assets: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA).
- BTC Dominance: Currently comprises ~80% of the fund’s holdings.
- Benchmark: CoinDesk 5 Index (CD5).
- Expense Ratio: 2.5%.
Background and Significance
Launched in February 2018, GDLC is among the first multi-token spot ETFs to gain SEC approval. Andy Baehr of CoinDesk Indices highlighted:
"This approval enables investors to access top-tier digital assets through a single, liquid product, leveraging the CD5 Index as its benchmark."
Pending Applications
Bitwise’s Bitwise 10 Crypto Index Fund (BITW) is next in line for SEC review. BITW’s holdings include:
- 79% BTC
- Remaining 21%: ETH, XRP, SOL, ADA, SUI, LINK, AVAX, LTC, and DOT.
Why This Matters
- Diversification: Investors gain exposure to multiple major cryptocurrencies via one ETF.
- Regulatory Milestone: Signals growing SEC acceptance of broad-based crypto ETFs.
FAQs
Q1: How does GDLC differ from Bitcoin-only ETFs?
A1: GDLC tracks five cryptocurrencies, offering diversified exposure vs. single-asset ETFs.
Q2: What’s the expense ratio for GDLC?
A2: 2.5%—higher than many traditional ETFs but competitive within crypto funds.
Q3: When will BITW’s ETF decision be finalized?
A3: No official timeline yet, but SEC typically reviews applications within 240 days.
👉 Stay updated on ETF approvals
Sources: CoinDesk, Grayscale Filings