The cryptocurrency asset management company Grayscale recently received approval from the U.S. Securities and Exchange Commission (SEC) to convert its digital large-cap fund, which includes Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA), into an exchange-traded fund (ETF).
About 80.2% of the fund's weight is in BTC, with ETH accounting for 11.3%, and the weights of XRP, SOL, and ADA are 4.8%, 2.7%, and 0.81% respectively. The approval was granted the day before the deadline, after several previous applications were rejected, the SEC finally agreed to Grayscale's conversion plan.
Bloomberg ETF analyst James Seyffart said that this move was expected, as over 90% of the fund's assets are concentrated in Bitcoin and Ethereum. He predicts that similar ETF conversions will see a new wave in the second half of 2025.
Another asset management company, Bitwise, is also planning to convert its Bitwise 10 Crypto Index Fund (BITW) into an ETF, which currently holds 79% Bitcoin, with the remaining assets including ETH, XRP, SOL, ADA, and others such as Sui, Chainlink, Avalanche, Litecoin, and Polkadot.
It is worth noting that the SEC has not yet approved an ETF focused on altcoins, but with the approval of mainstream funds such as Grayscale and Bitwise, more ETF applications, including those involving TRX, DOGE, SUI, AVAX, and LTC, are expected in the second half of 2025.
