XRP News Today: Grayscale’s Digital Large Cap Fund Conversion to ETF Halted by SEC

Generated by AI AgentCoin World
Wednesday, Jul 2, 2025 5:20 pm ET1min read

Grayscale’s Digital Large Cap Fund (GDLC) has been temporarily halted from converting into an exchange-traded fund (ETF) despite receiving approval from the Securities and Exchange Commission (SEC) on July 1. The stay order, issued by the SEC, blocks the conversion for an unspecified period, with no timeline provided for its removal.

Analysts have proposed two potential reasons for the temporary halt. The first theory suggests that staff in another division may still be reviewing GDLC’s structure, or the SEC might prefer to keep all crypto listings on hold until it completes a broader rule set for token-based ETFs. The second theory posits that the SEC could be waiting for the first spot ETFs tracking

Solana
,
Cardano
, and
XRP
to hit the market before allowing Grayscale to trade its multi-asset fund.

The approval amended NYSE Arca Rule 8.500-E, permitting the trust’s units to trade on the exchange once the operational details are cleared. GDLC holds

Bitcoin
,
Ethereum
, Solana, XRP, and Cardano, with approximately $775 million in assets under management. Once the stay is lifted, the fund will transition to an in-kind creation and redemption format, replacing the current closed-end structure.

Recent reports indicate that the SEC and US exchanges are working on a standardized framework for token ETFs. Under this proposal, an issuer would file only a Form S-1, wait the customary 75 days, and launch if the registration becomes effective. This framework would allow issuers to bypass the current Rule 19b-4 change required for each product. Analysts view this prospect as positive, as a single standard would shorten timelines and provide clear thresholds for market capitalization, trading volume, and liquidity.

Other crypto basket funds, including filings submitted by Bitwise, Hashdex, and Franklin Templeton, are awaiting SEC approval. According to one analyst’s theory, the regulator might be waiting to give GDLC full clearance so it can approve the other ETFs under the same standards. Notably, the deadline for a decision on Bitwise’s filing expires on July 31, which could be a key date to watch for the rumored framework.