Grayscale Receives SEC Approval To Convert Crypto Fund To ETF

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Grayscale Fund Conversion Anticipated Given Heavy BTC And ETH Weighting Wave Of New ETF Functions Predicted In The Second Half Of 2025 Associated Articles:

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Crypto asset supervisor Grayscale has acquired the greenlight from the US Securities and Trade Fee (SEC) to transform its Digital Giant-Cap Fund into an ETF (exchange-traded fund).

The fund contains the 5 largest cryptos by market cap featured within the CoinDesk 5 Index. This consists of market leaders Bitcoin (BTC), Ethereum (ETH), in addition to altcoins Solana (SOL), Ripple (XRP), Cardano (ADA).

The SEC permitted the conversion a day earlier than the deadline for the choice. Prior to now, the regulator has rejected Grayscale’s functions on the final minute.

Grayscale Fund Conversion Anticipated Given Heavy BTC And ETH Weighting

Round 80.2% of the transformed fund’s weighting is BTC, whereas ETH, the most important altcoin by market cap, has a weighting of roughly 11.3%.

XRP has the following greatest weighting of 4.8%, whereas SOL and ADA have weightings of two.7% and 0.81%, respectively.

The SEC approving the conversion of Grayscale’s Digital Giant Cap Fund was anticipated, in keeping with Bloomberg ETF analyst James Seyffart.

“Approval was our expectation,” he stated in a July 1 X put up, earlier than including, “The fund is over 90% Bitcoin and Ethereum.“

Approval was our expectation. The fund is over 90% Bitcoin and Ethereum. The subsequent massive date is @Bitwise‘s $BITW deadline of July 31. However SEC might clearly go early…
We wrote about this and extra right here for Bloomberg terminal shoppers: https://t.co/7C0bO3pcxB pic.twitter.com/BdHNe7ZQsS
— James Seyffart (@JSeyff) July 1, 2025

Bitwise, one other crypto asset supervisor, is subsequent in line to obtain a call from the SEC.

The agency is seeking to convert its Bitwise 10 Crypto Index Fund (BITW) into an ETF. This fund presently holds 79% in Bitcoin, with the remainder of BITW’s holdings together with the likes of ETH, XRP, SOL, ADA, Sui (SUI), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC) and Polkadot (DOT).

Wave Of New ETF Functions Predicted In The Second Half Of 2025

Grayscale’s permitted conversion comes as asset managers rush to file ETF functions for smaller altcoins akin to Tron (TRX), Dogecoin (DOGE), SUI, AVAX, and LTC.

In a June 30 X put up, Seyffart stated that he and his colleague, Eric Balchunas, “count on a wave of recent ETFs on this second half of 2025.”

The SEC has not but permitted ETFs that focus solely on altcoins.