Crypto asset manager Grayscale Investments has filed a request with the U.S. Securities and Exchange Commission (SEC) to convert its multi-crypto fund into a spot crypto exchange-traded fund (ETF).

The New York Stock Exchange (NYSE) submitted the 19b-4 filing on Grayscale’s behalf on Oct. 14, officially setting in motion the request to convert Grayscale’s Digital Large Cap Fund (GDLC).

The fund is heavily weighted towards the top two crypto assets by market cap —  bitcoin represents 75% of the fund’s total assets, while ether represents 19% — with smaller allocations to solana, XRP, and avalanche. At the time of writing, GDLC had around $524 million in assets under management.

If approved, this would be Grayscale’s first multi-crypto ETF, offering investors exposure to a basket of digital assets in a single investment vehicle.

ETFs are generally easier to sell than closed-ended funds for several reasons. New shares can be created or redeemed based on demand, allowing for greater liquidity. These funds also closely track their Net Asset Value (NAV), making it easier to trade at fair prices in the absence of large discounts or premiums.

That easier process of selling shares hasn’t exactly worked in Grayscale’s favor. Both the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETF) saw significant inflows after converting into ETFs.

GBTC has seen $20 billion in outflows, while ETHE has seen $3 billion in outflows to date.

The verdict is still out on the SEC’s stance on crypto assets other than bitcoin and ether.  A series of lawsuits brought by the regulator have labeled several crypto assets securities, including XRP, avalanche and solana. 

According to Nate Geraci, President of The ETF Store, the move could suggest issuers are leaning towards a change in administration ahead of the U.S. election. Republican candidate and former President Donald Trump has said he would fire SEC Chair Gary Gensler “on day one.”

“Basically lining-up in the event of a Trump win w/ the assumption that admin would be much more crypto friendly,” said Geraci on X.