Grayscale May Pursue Legal Action if SEC Continues Delay on Bitcoin-Dominant ETF Launch

Key Points

1. Grayscale’s Digital Large Cap Fund, which includes Bitcoin (80%), Ethereum (11%), Solana (2.8%), XRP (4.8%), and Cardano (0.8%), was initially approved by the SEC on July 1 but later delayed.

2. The SEC’s delay prevents current investors from accessing the product, increasing tensions between asset managers and regulators.

3. Grayscale argues that the SEC’s delay violates congressional rules, emphasizing the need for a clear regulatory framework for ETF approvals.

4. The delay contrasts with the successful launches of Bitcoin and Ethereum ETFs in the U.S. last year, highlighting inconsistent regulatory approaches.

5. Grayscale’s potential legal action underscores the growing demand for diversified crypto products in the market.