SEC Halts Grayscale Large Cap Fund Approval for 'Review'
2025-07-02 20:17:05
Main Idea
The SEC is reviewing Grayscale's uplisting of its Digital Large Cap Fund (GDLC) to an ETF, which was initially approved through delegated authority.
Key Points
1. The SEC approved Grayscale's conversion of the GDLC into an ETF earlier this week but is now reviewing the decision.
2. The GDLC holds $755 million in bitcoin and is benchmarked to CoinDesk's CoinDesk 5 Index.
3. The review was initiated under Rule 431 of the SEC’s Rules of Practice, and the July 1 approval order is stayed pending the review.
4. Any SEC commissioner can request a review of an SEC action, and in the past, commissioners have reviewed ETF disapprovals.
5. Spokespeople for Grayscale and the NYSE did not immediately respond to requests for comment, and an SEC spokesperson declined to comment on the letter.
Description
The U.S. Securities and Exchange Commission's leaders are reviewing the agency's recent approval of a Grayscale effort to convert a fund into an exchange-traded fund (ETF), a letter dated July 1 said. The SEC allowed Grayscale to uplist the Digital Large Cap Fund (GDLC), which holds $755 million in bitcoin BTC, Ethereum ETH, XRP XRP, Solana SOL and Cardano ADA, into an ETF through delegated authority — meaning the SEC's commissioners did not vote to approve the conversion, but rather agency staf...
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