Grayscale Investments wants to convert its current Digital Large Cap Fund—which includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Avalanche (AVAX)—into an exchange-traded fund (ETF).

The New York Stock Exchange made the request to the U.S. Securities and Exchange Commission (SEC) on behalf of Grayscale, filing the 19b-4 form requesting permission to convert the fund. The Wall Street Journal first reported the news.

Grayscale previously converted its Bitcoin Trust and Ethereum Trust into spot ETFs earlier this year following SEC approval of each respective product in the U.S.

The products once acted like closed-end funds, making it harder for investors to redeem shares. But following their conversion into the popular ETF investment vehicles, clients have fast been cashing out. 

Grayscale Digital Large Cap Fund (GDLC) gives investors exposure to major cryptocurrencies. BTC has the largest weighting in the fund, followed by ETH, SOL, XRP, and AVAX. All assets in the fund make up the 20 biggest digital coins by market cap. 

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Author: Andrew Hayward,Mathew Di Salvo