XRP News Today: Grayscale Challenges SEC Halt on Crypto ETF Launch

Grayscale Investments has taken a firm stance against the U.S. Securities and Exchange Commission’s (SEC) decision to halt the launch of its large-cap crypto ETF, the Grayscale Digital Large Cap Fund (GDLC). The asset manager has filed a letter with the SEC, arguing that the agency’s stay order is both unlawful and detrimental to investors. The SEC had initially approved the conversion of GDLC into an exchange-traded fund (ETF) earlier this year but subsequently issued a stay order to review the approval without providing a public explanation.

In its letter, Grayscale contends that the delay is causing harm to the company, the exchange, and the fund’s current investors. The GDLC ETF is designed to hold a basket of large-cap digital assets, including bitcoin, ether, XRP, solana, and cardano, with approximately 80% of the fund currently weighted in bitcoin. This move is part of Grayscale’s broader strategy to bring more crypto products to mainstream financial markets, following the launch of its spot bitcoin ETF in January.

While the SEC has not disclosed its reasons for the delay, market observers suggest that the hold is likely due to internal procedural issues rather than political opposition to crypto. The ETF would include Bitcoin, Ethereum, Solana, Cardano, and XRP. Notably, Cardano and XRP do not currently have their own individual ETFs, and Solana has only one fund, with several applications hoping to add to this number.

Scott Johnsson, a financial lawyer and ETF expert, has suggested that although the SEC’s move is unusual, it is unlikely to derail the fund entirely. Johnsson speculated that the Rule 431 application might have been a unilateral decision by SEC Commissioner Caroline Crenshaw, and that the launch of the ETF is still expected, albeit with a delay. If approved, GDLC would be the first multi-asset crypto ETF in the U.S., providing investors with exposure to a curated basket of top digital currencies without the need to manage wallets or custody themselves.