SEC Halts Grayscale Digital Large Cap Fund Launch for Review
The U.S. Securities and Exchange Commission (SEC) has paused the launch of the Grayscale Digital Large Cap Fund (GDLC) for administrative reasons, not political ones, according to sources. The SEC approved GDLC to uplist as an exchange-traded fund (ETF) but informed Grayscale and the New York Stock Exchange that its commissioners will review the approval, delaying the go-live date.
Key points include:
- GDLC is based on CoinDesk Indices' CoinDesk 5 Index.
- The pause allows the SEC to develop listing standards for similar ETFs.
- GDLC includes XRP and Cardano, which do not have individual ETFs currently.
- Bitcoin and Ethereum ETFs have been approved since 2024.
- Solana launched its first ETF recently; other applications remain under review.
- Deadlines for XRP, ADA, and SOL ETF applications are approaching.
- Grayscale stated the SEC's pause was unexpected but reflects the evolving regulatory landscape.
Grayscale emphasizes its commitment to pursuing the GDLC listing and is collaborating with stakeholders for approval.