XRP News Today: SEC Pauses Grayscale ETF Conversion Amid Regulatory Review

The U.S. Securities and Exchange Commission (SEC) has temporarily delayed the conversion of Grayscale’s Digital Large Cap Fund (GDLC) into a spot ETF, despite initially approving the listing and trading of the fund on NYSE Arca. The SEC's decision to pause the conversion came just a day after its staff gave the green light for the fund to start trading. The SEC notified the New York Stock Exchange that it would review the delegated action, effectively staying the order until further notice. This move has left investors in a state of uncertainty, as the debut of the ETF has been temporarily postponed.

The SEC's decision to pause the conversion of GDLC into a spot ETF is likely tied to its ongoing efforts to create an internal framework for issuing crypto exchange-traded products. According to analysts, the SEC may be waiting to issue listing standards for crypto ETPs before allowing any '33 act spot ETFs to hit the market with these other coins. This delay could be a strategic move by the SEC to ensure that all crypto ETPs meet certain regulatory standards before they are made available to investors.

The GDLC fund holds a diverse range of digital assets, with Bitcoin comprising around 80% of its holdings. Ethereum makes up roughly 11% of the ETF’s assets, while Solana accounts for approximately 2.8%. Ripple’s XRP commands over 4.8%, and Cardano (ADA) has a weighting of 0.8% in the fund. The SEC has yet to give the nod to other altcoin spot products, including those tracking the price of Solana, XRP, and Cardano. However, analysts are confident that the regulator will approve such crypto products by year-end.

The delay in the conversion of GDLC into a spot ETF highlights the SEC's cautious approach towards regulating the crypto industry. While the SEC has greenlighted Bitcoin and Ethereum spot ETFs, it has yet to approve other altcoin spot products. This delay could be seen as a strategic move by the SEC to ensure that all crypto ETPs meet certain regulatory standards before they are made available to investors. The SEC's decision to pause the conversion of GDLC into a spot ETF is likely tied to its ongoing efforts to create an internal framework for issuing crypto exchange-traded products. This delay could be a strategic move by the SEC to ensure that all crypto ETPs meet certain regulatory standards before they are made available to investors.