Grayscale has received approval from the US Securities and Exchange Commission (SEC) to convert its Digital Large-Cap Fund into an exchange-traded fund (ETF). This fund contains the five largest cryptocurrencies by market capitalization according to the CoinDesk Five Index, with Bitcoin making up approximately 80.2% of its value, followed by Ether, Solana, XRP, and Cardano. Previously, investors exploited pricing discrepancies due to the fund's lock-up periods and the in-kind redemption limitations of Grayscale's crypto trusts. The SEC's approval marks a significant change in the crypto investment landscape and reflects a maturation in the industry. Grayscale had previously faced legal challenges after its conversion request was initially denied in 2022. In August 2023, a court ruled in Grayscale's favor, categorizing the SEC's denial as arbitrary. The shift to an ETF model signifies a new era for Grayscale and provides a more streamlined investment vehicle in digital assets.

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