03.07.2025 17:11

The U.S. Securities and Exchange Commission (SEC) has halted the approval of Grayscale Investments' application to transform its Digital Large Cap Fund into an exchange-traded fund (ETF) and list it on the NYSE Arca. This decision, announced on July 2nd, overturns a previous July 1st approval granted by the SEC's Division of Trading and Markets. The SEC's action effectively puts the conversion on indefinite hold, pending a full commission review.

This multi-asset crypto fund, holding approximately 80% Bitcoin, 12% Ether, and a smaller percentage of XRP, Solana, and Cardano, would have been a groundbreaking development. Had it launched, it would have been the first U.S. spot crypto ETF with significant exposure to altcoins, going beyond the dominant Bitcoin and Ether. The SEC's decision to delay its listing suggests a strategic move.

Analysts speculate that the SEC's pause stems from a desire to formulate comprehensive regulatory guidelines for digital asset ETFs before approving products encompassing a diversified range of cryptocurrencies. The commission hasn't provided a timeline for completing its review, nor has Grayscale publicly responded to this significant development.

This news, sourced from internet resources and curated by The Defiant, highlights the ongoing regulatory uncertainty surrounding the cryptocurrency market in the United States. The SEC's actions underscore the complexities involved in balancing innovation with investor protection within the rapidly evolving digital asset landscape.