SEC Approves Grayscale Crypto Trust Conversion To ETF
Grayscale received SEC approval to convert its Digital Large-Cap Fund into an ETF, comprising the five largest cryptocurrencies by market cap. The fund allocates approximately 80.2% to Bitcoin (BTC), 11.3% to Ether (ETH), 2.7% to Solana (SOL), over 4.8% to XRP, and 0.81% to Cardano (ADA). Arbitrage opportunities for Grayscale's crypto trusts have decreased since the conversion began, attributed to the lock-up period and lack of in-kind redemptions. The fund aims for share value to reflect the digital assets' value minus expenses. Grayscale's legal battle for ETF conversion began in June 2022 after the SEC denied its application, culminating in a favorable court ruling in August 2023. Grayscale's Bitcoin trust now operates as an ETF with a 1.5% expense ratio, making it the most expensive Bitcoin ETF available.
