Catenaa, Friday, July 04, 2025- Grayscale said Thursday it remained committed to converting its Digital Large Cap Fund into a crypto ETF, despite the US Securities and Exchange Commission halting the process just a day after approval.
The SEC’s Division of Trading and Markets had initially gave greenlight to the conversion, but the full commission opted to stay the order for further review.
Analysts opined that the agency’s decision highlighted the lingering regulatory uncertainty surrounding crypto-based exchange-traded products, even as markets anticipate a broader wave of approvals.
Grayscale described the pause as “unexpected” but said it is working closely with stakeholders to meet regulatory requirements. The company emphasized that the digital asset ETF landscape remains in flux as regulators develop consistent listing standards.
The Digital Large Cap Fund, known as GDLC, is heavily weighted toward Bitcoin and Ethereum, with smaller allocations to Solana, Cardano and XRP. It currently trades over the counter and targets accredited investors.
The pause comes amid what some analysts have called a friendlier regulatory climate under President Donald Trump. The SEC is evaluating numerous proposals for crypto ETFs as the digital asset sector continues its push toward mainstream financial integration.
