Grayscale Pushes for Crypto ETF Amid Market Shifts and Rising Rivalry

Grayscale's Ambitious Move to Convert Crypto Fund into ETF

Grayscale Investments, a prominent player in the cryptocurrency investment space, has filed to convert its private Digital Large Cap Fund into a publicly traded exchange-traded fund (ETF). This fund currently includes major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano. At present, Bitcoin dominates the fund with a 79.4% weighting, followed by Ethereum at 10.69%, XRP at 5.85%, Solana at 2.92%, and Cardano at 1.14%. Notably, Cardano was added to the fund in January 2025, replacing Avalanche due to an index rebalancing.

Since its inception in 2018, the fund has seen a cumulative market price increase of 478.83%. If approved, the ETF conversion would allow everyday investors to access the fund, which currently covers approximately 75% of the digital asset market cap, excluding meme coins and stablecoins. This move aligns with the growing trend of crypto ETFs, with U.S. Bitcoin ETFs managing $97.27 billion in assets and Ethereum ETFs holding $8.59 billion as of now.

“The conversion of this fund into an ETF would enable everyday investors to gain exposure to the crypto market,” Grayscale stated in its filing.

Key Takeaways:

Grayscale's Digital Large Cap Fund includes Bitcoin, Ethereum, XRP, Solana, and Cardano.
The fund has grown by 478.83% since 2018.
ETF conversion aims to make the fund accessible to a broader audience.

Source: Decrypt

Bitcoin, Ethereum, and XRP Face Market Volatility

Bitcoin (BTC), Ethereum (ETH), and XRP are bracing for significant market volatility amid U.S. President Donald Trump’s "Liberation Day" tariff announcements. Bitcoin recently faced resistance at $85,000 after recovering 3.16% earlier in the week. Ethereum, trading near $1,861, struggles to maintain its support level, while XRP has dropped below its 100-day EMA, trading at $2.09.

Analysts highlight that Bitcoin's Relative Strength Index (RSI) indicates bearish momentum, with potential declines to $78,258 if resistance at $85,000 persists. Ethereum could see further drops to $1,700 if it fails to hold its current support, while XRP risks falling to $1.96 if bearish trends continue.

Key Takeaways:

Bitcoin faces resistance at $85,000, with bearish momentum indicated by RSI.
Ethereum struggles to maintain support at $1,861, risking a drop to $1,700.
XRP trades at $2.09, with potential declines to $1.96.

Source: FXStreet

Ethereum's Struggles Amid Market Competition

Ethereum (ETH) has faced a challenging year, with its price down 45% year-to-date. Once the dominant blockchain for decentralized finance (DeFi) and smart contracts, Ethereum now accounts for 53% of the total value locked (TVL) in DeFi protocols, a significant drop from 96% in 2020. Competitors like Solana, which processes over 4,000 transactions per second at lower fees, have gained market share.

Adding to its woes, Ethereum's leadership has faced criticism for slow responses to network inefficiencies. In January, co-founder Vitalik Buterin announced a leadership overhaul at the Ethereum Foundation to address these issues. Despite these challenges, Ethereum remains the second-largest cryptocurrency by market cap, with potential for recovery if it can improve its efficiency and regain investor confidence.

Key Takeaways:

Ethereum's TVL in DeFi has dropped to 53% from 96% in 2020.
Competitors like Solana offer faster and cheaper transactions.
Leadership changes aim to address network inefficiencies.

Source: The Motley Fool

ETH/BTC Ratio Hits Multi-Year Low

The Ethereum-to-Bitcoin (ETH/BTC) ratio has dropped to 0.022, its lowest level since December 2020. This decline highlights Ethereum's underperformance relative to Bitcoin, with Ethereum down 46% year-to-date compared to Bitcoin's 10% decline. Ethereum's total value locked (TVL) in DeFi has also decreased, reflecting reduced network activity and market interest.

Despite these challenges, historical data suggests that Ethereum often rebounds after consecutive bearish months. Analysts predict a potential bottom for the ETH/BTC ratio between 0.017 and 0.022, with a recovery likely in the coming months.

Key Takeaways: