Grayscale Files For Bitcoin, Ethereum ETF With SEC

Grayscale Investments has submitted an S-3 form to the U.S. Securities and Exchange Commission (SEC) to register its Digital Large Cap Fund as an exchange-traded fund (ETF). This fund includes prominent cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano. If the SEC approves this application, it could pave the way for increased institutional investment in cryptocurrencies, providing regulated access for major financial players. This move signifies another milestone in the integration of cryptocurrencies into mainstream finance, although regulatory approval remains pending.

In addition to the Digital Large Cap Fund, Grayscale has also filed for a spot Avalanche ETF with the SEC. This application seeks to list and trade shares of the ETF on the Nasdaq exchange by converting the existing Avalanche Trust into a listed ETF. The product, which was launched in August 2024, currently manages $1.7 million and charges a 2.5% annual fee. The ETF aims to provide exposure to AVAX through conventional brokerage platforms, with Coinbase Custody handling custody, BNY Mellon overseeing administration, and CSC Delaware Trust Company acting as trustee. The fund will track AVAX using a benchmark index provided by CoinDesk Indices.

Grayscale's initiatives to convert its Digital Large Cap Fund into an ETF and to file for a spot Avalanche ETF are part of a larger trend in the crypto industry towards greater integration with traditional finance. These developments could simplify the process for institutional investors to gain exposure to digital assets, potentially driving further growth in the crypto market. However, the approval of these ETFs is subject to regulatory review, and there is no guarantee that they will be approved by the SEC.