Asset manager Grayscale threatens legal action against the U.S. Securities and Exchange Commission (SEC) following an approval delay of its Bitcoin-dominant multi-token ETF. The regulatory halt prevents investor access to the product shortly after initial authorization, intensifying tensions between financial firms and regulators.
Grayscale’s Digital Large Cap Fund – holding Bitcoin (80%), Ethereum (11%), Solana (2.8%), XRP (4.8%), and Cardano (0.8%) – secured SEC approval on July 1. The subsequent regulatory delay violates congressional rules according to Grayscale, underscoring the urgent need for transparent crypto ETF approval frameworks.
This postponement contrasts with last year’s successful launches of spot Bitcoin and Ethereum ETFs in the U.S., highlighting perceived inconsistencies in the SEC’s regulatory approach. Grayscale’s potential lawsuit emphasizes growing market pressure for diversified cryptocurrency investment products beyond single-asset funds.