US SEC Pauses Approval of Grayscale Digital Large Cap Fund ETF
The United States Securities and Exchange Commission (SEC) will not take action on Grayscale's Exchange Traded Fund (ETF) filing for several cryptocurrencies, including Solana, XRP, Cardano, Bitcoin, and Ethereum.
Key points include:
- The SEC has approved a rule change allowing the Grayscale Digital Large Cap Fund (GDLC) to be listed as a spot ETF on NYSE Arca.
- A pause has been placed on the order approving trading of the Grayscale fund indefinitely.
- The GDLC ETF is composed of approximately 80% Bitcoin, 12% Ethereum, with minimal exposure to SOL, XRP, and ADA.
- The SEC aims to establish guidelines for crypto ETFs before progressing with Grayscale's application.
- Conflicting orders within the SEC suggest potential internal disagreements regarding the approval process.
- James Seyffart, a Bloomberg ETF analyst, indicated that the SEC may develop an internal framework for digital asset ETFs.
- The REX-Osprey Solana Staking ETF recently launched, generating $12 million in inflows and $33 million in trading volume on its first day.
Currently, there are multiple altcoin ETF applications pending SEC decisions.