Catenaa, July 03, 2025- The US Securities and Exchange Commission has suspended its own approval to convert Grayscale’s Digital Large Cap Fund into a crypto ETF, just one day after staff cleared it for trading.
In a letter to the New York Stock Exchange on Wednesday, SEC Deputy Secretary J. Matthew DeLesDernier confirmed that the July 1 order allowing the conversion was stayed pending full Commission review.
The move effectively pauses the fund’s transition into an exchange-traded product until further notice.
The ETF, which holds nearly 80% bitcoin and 11% Ethereum, along with smaller allocations in Solana, Cardano and XRP, had been approved on an “accelerated basis” by the Division of Trading and Markets.
It was expected to begin trading this week for accredited investors.
Grayscale did not issue an immediate statement. An SEC spokesperson declined to comment on the paused approval or on the status of individual fund applications.
The reversal comes amid rising pressure on the SEC, which is now reviewing a wave of crypto ETF proposals, including products tied to DOGE, SOL and XRP. Industry insiders say the SEC’s cautious approach reflects ongoing regulatory tension between staff-level decisions and broader Commission oversight.
