Grayscale calls out SEC delay of Digital Large Cap Fund ETF listing

Key Points

1. Grayscale's attorneys objected to the SEC's delay in approving its Digital Large Cap ETF, stating it clashes with existing statutes.

2. The SEC’s Division of Trading and Markets initially approved the ETF proposal, but the SEC’s Office of the Secretary later halted the decision for review.

3. Grayscale’s attorneys claim the delay conflicts with established procedures, citing Section 19(b)(2)(D), which deems the rule proposal approved if not acted upon by the deadline.

4. The SEC is exploring simplifying the ETF approval process for select crypto investment vehicles, potentially allowing certain issuers to bypass 19b-4 filings.

5. Grayscale’s efforts to convert its crypto-based trusts into ETFs reflect the maturation of crypto investment vehicles.