SEC Hits Pause on Grayscale's XRP, Solana and Cardano ETF Conversion
2025-07-02 21:17:57
Main Idea
The SEC has conditionally approved Grayscale's Digital Large Cap Fund (GDLC) but delays its launch pending an internal framework for digital asset ETFs, while analysts predict high approval odds for altcoin ETFs by end of 2025.
Key Points
1. The SEC approved Grayscale's GDLC fund but attached a letter indicating it cannot launch until the SEC finalizes a framework for digital asset ETFs.
2. Bloomberg analysts suggest the SEC is developing internal standards for crypto ETFs and delayed GDLC's launch to align with these upcoming regulations.
3. Analysts estimate a 95% chance of approval for Solana, XRP, and Litecoin spot ETFs by the end of 2025, with other altcoins like Dogecoin and Cardano also likely.
4. Grayscale's GDLC fund currently operates as a closed-end fund with major exposure to Bitcoin (80%) and Ethereum (12%), plus smaller allocations to XRP, Solana, and Cardano.
5. The SEC's Division of Trading and Markets approved GDLC, but other agency divisions may influence further delays due to regulatory or political considerations.
Description
Though the agency greenlit the partially altcoin-exposed ETF this week, it also paused the approval until further notice.
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