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Grayscale ETF Faces Indefinite Delay as SEC Reassesses Earlier Approval

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One day it took only one day for the US Securities and Exchange Commission (SEC) to go back with an approval given to the Grayscal Digital Large Cap Fund (GDLC) to convert in a trading background in the stock exchange (ETF), inadvertently stopping its launch.

On 1 July 2025, the century shared a letter indicating its intention to review the recent approval granted to GDLC again to convert its fund into an ETF.

The approval of the ETF Grayscale century had been accepted as a reference development for multi-depth cryptographic Etfs in the United States. For the unboted, Grayscale brings a regulatory structure to a product that traces Bitcoin, Ethereum and other tokens that lead by converting its multi-depth encryption fund.

The initial approval of the regulatory body indicated that its authorities were confident in the readiness of the product for the market. However, he decided to invoke the 431 rule of the secure rules of the century to review his previous decision.

The GDLC fund holds $ 755 million in Bitcoin, Ethereum, Solana, XRP and Cardano. According to some analysts, the staff of the SEC Agency has signed the approval rather than the commissioners, therefore referred to it.

In his letter addressed to the New York Stock Exchange (NYSE), the century said: “This letter must inform you that, based on Rule 431 of the commission rules of the Commission, 17 CFR 201,431, the Commission will examine the delegated action”.

In addition, he confirmed: “In accordance with the rule 431 (e), on 1 July 2025, the order is suspended until the contrary of the Commission.”

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The Altcoin exposure provides for a rare secure revision of the Grayscal ETF application

The GDLC fund, launched in 2018, includes a variety of cryptocurrencies, with over 91% of its participations invested in Ethereum and Bitcoin. The rest consists of altcoin such as XRP, Solana and Cardano.

In addition, the GDLC includes consolidated cryptocurrencies according to their market size and adjust each quarter to combine changes. If approved, the GDLC will become a public ETF that allows investors to keep different cryptocurrency activities in one place.

Historically, these inversions are rare. Often they report internal debates in progress on the protection of investors, managing the regulatory coherence and market stability. Altcoin, posing of various degrees of risk, could have been the trigger for the commissioners of the century to renounce the approval at the staff level.

The inclusion of activities such as XRP and Solana, whose status is still under discussion, may have raised concerns as regards the legal treatment of the underlying tokens and the clarity of the dissemination as multi-depth products, such as those of Grayscale, add further levels of structural and legal complexity, on the contrary with the single asset ETFs.

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Bloomberg’s analyst thinks that sec realutting the grayscale Etf to develop clearer rules

Some analysts, such as Bloomberg’s Eric Balchunas, believe that the sec is re -evaluating the Etf Grayscale to develop clearer rules before allowing more complex encryption funds. Baluchnas also hypothesizes that the regulatory body is waiting to establish coherent standards for cryptographic investment products before giving the green signal to the ETF of GDLC.

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Keyway keyway

  • The GDLC fund contains $ 755 million in Bitcoin, Ethereum, Solana, XRP and Cardano

  • Bitcoin Ethereum constitute over 91% of the GDLC fund portfolio

  • Multi-asset products, such as those of Grayscale, add additional levels of structural and legal complexity in contrast with the single assets ETFs

The post grayscal Etf has to face an indefinite delay since the sec re -evaluation the previous approval appeared for the first time on 99 bitcoins.

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