It only took one day for the US Securities and Exchange Commission (SEC) to walk back on an approval given to Grayscale Digital Large Cap Fund (GDLC) to convert to an exchange-traded fund (ETF), inadvertently halting its launch.<\/p>\n
On 1 July 2025, the SEC shared a letter <\/a>stating its intention to again review the recent approval granted to GDLC to convert its fund into an ETF.<\/p>\n The SEC\u2019s approval <\/a>of the Grayscale ETF had been welcomed as a landmark development for multi-asset crypto ETFs in the US. For the uninitiated, Grayscale brings a regulatory structure to a product that tracks Bitcoin, Ethereum, and other leading tokens by converting its multi-asset crypto fund.<\/p>\n The regulatory body\u2019s initial approval indicated that its authorities were confident in the product\u2019s readiness for the market. Nonetheless, it has decided to invoke Rule 431 of the SEC\u2019s Rules of Practice to review its earlier decision.<\/p>\n Breaking news from yesterday and thoughts <\/p>\n \u2013 Despite initial clearance from the SEC, it recently hit pause on plans to convert Grayscale\u2019s Digital Large Cap Fund into an ETF<\/p>\n The temporary pause doesn\u2019t necessarily mean denial, it\u2019ll trigger further review, to assess: Market\u2026 https:\/\/t.co\/apyNUx2D62<\/a><\/p>\n \u2014 Salazar.eth (@0xSalazar) July 3, 2025<\/a><\/p>\n\n The GDLC fund holds $755 million in Bitcoin, Ethereum, Solana, XRP and Cardano. According to some analysts, the SEC\u2019s agency staff signed off on the approval rather than the commissioners, hence the call back.<\/p>\n In its letter addressed to the New York Stock Exchange (NYSE), the SEC said, \u201cThis letter is to notify you that, pursuant to Rule 431 of the Commission\u2019s Rules of Practice, 17 CFR 201.431, the Commission will review the delegated action.\u201d<\/p>\n Additionally, it confirmed, \u201cIn accordance with Rule 431(e), the July 1, 2025, order is stayed until the Commission orders otherwise.\u201d<\/p>\n Explore<\/strong>:\u00a020+ Next Crypto to Explode in 2025<\/a><\/p>\n The GDLC fund, launched in 2018, includes a variety of cryptocurrencies, with more than 91% of its holdings invested in Ethereum and Bitcoin. The rest is made up of altcoins such as XRP, Solana and Cardano.<\/p>\n Also, the GDLC includes established cryptocurrencies based on their market size and adjusts every quarter to match changes. If approved, the GDLC will become a public ETF that lets investors hold several crypto assets in one place.<\/p>\n Historically, such reversals are uncommon. They often signal ongoing internal debates on investor protection, managing regulatory consistency and market stability. Altcoins, posing varying degrees of risk, could have been the trigger for the SEC commissioners to renege on the staff-level approval.<\/p>\n The inclusion of assets like XRP and Solana, whose status is still up for debate, may have raised concerns regarding the legal treatment of the underlying tokens and the clarity of disclosure as multi-asset products, such as Grayscale\u2019s, add additional levels of structural and legal complexity, in contrast to single-asset ETFs.<\/p>\n Explore<\/strong>:\u00a010+ Crypto Tokens That Can Hit 1000x in 2025<\/a><\/p>\n Some analysts, such as Bloomberg\u2019s Eric Balchunas, believe that the SEC is reassessing the Grayscale ETF to develop clearer rules before allowing more complex crypto funds. Baluchnas also speculates that the regulatory body is waiting to set consistent standards for crypto investment products before giving the green signal to GDLC\u2019s ETF.<\/p>\n The plot thickens. Upper level of SEC telling $GDLC<\/a> it can’t launch until otherwise notified. Not sure why, no other info than this letter. My guess tho: They want to issue the crypto ETP listing standards before any ’33 act spot ETFs hit market with these other coins. So likely\u2026 https:\/\/t.co\/Za7rYk1o0E<\/a><\/p>\n \u2014 Eric Balchunas (@EricBalchunas) July 2, 2025<\/a><\/p>\n\n \u00a0<\/p>\n Explore<\/strong>:\u00a0Top Solana Meme Coins to Buy in July 2025<\/a><\/p>\n The GDLC fund holds $755m in Bitcoin, Ethereum, Solana, XRP and Cardano Bitcoin and Ethereum make up more than 91% of the GDLC fund\u2019s portfolio Multi-asset products, such as Grayscale\u2019s, add additional levels of structural and legal complexity in contrast to single-asset ETFs <\/p><\/div>\n The post Grayscale ETF Faces Indefinite Delay as SEC Reassesses Earlier Approval<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" It only took one day for the US Securities and Exchange Commission (SEC) to walk back on an approval given to Grayscale Digital Large Cap Fund (GDLC) to convert to an exchange-traded fund (ETF), inadvertently halting its launch. On 1 July 2025, the SEC shared a letter stating its intention to again review the recent […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-78018","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/78018"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=78018"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/78018\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=78018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=78018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=78018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Altcoin Exposure Draws Rare SEC Review of the Grayscale ETF Application<\/strong><\/h2>\n
Bloomberg Analyst Thinks SEC is Reassessing Grayscale ETF to Develop Clearer Rules<\/h2>\n
Key Takeaways<\/h2>\n
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