‘Bizarre Situation’: SEC Halts Conversion for Another ETF Holding Bitcoin, Ethereum, and XRP

Key Points

1. The SEC halted the approval of Bitwise’s 10 Crypto Index ETF shortly after initial approval, causing uncertainty among crypto ETF observers.

2. Grayscale’s Digital Large Cap Fund (GDLC) received SEC approval to convert into a spot ETF, holding Bitcoin, Ethereum, XRP, Solana, and Cardano.

3. The SEC’s Office of the Secretary announced a full Commission review of the Bitwise ETF approval under Rule 431, with no set timeline.

4. Grayscale warned that delays in ETF approvals could harm investors and raised the possibility of legal action.

5. Bloomberg ETF analyst James Seyffart noted that Bitcoin and Ethereum account for 90% of Grayscale’s GDLC assets.