Investors Are “Suffering Harm” Due To SEC’s Surprise Pause On ETF Holding XRP And Solana, Asserts Grayscale

Key Points

1. Grayscale's GDLC is primarily composed of Bitcoin (80%), with Ethereum (11%), Solana (2.8%), XRP (4.8%), and Cardano (0.8%) making up the remainder.

2. The SEC initially approved the conversion on July 1 but later paused it for an internal review, prompting Grayscale to argue that the delay violates regulatory rules and should be automatically approved.

3. Grayscale is considering filing a petition to lift the SEC's stay, allowing the fund to launch while the review proceeds.

4. The conversion aligns with Grayscale's broader strategy following the successful launch of its spot Bitcoin ETF in early 2024.

5. The SEC has received numerous ETF applications for various cryptocurrencies amid a more crypto-friendly regulatory environment under President Donald Trump.